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Over a 38-year period, an asset had an arithmetic return of 11.5 percent and a geometric return of 9.4 percent. Using Blumes formula, what is
Over a 38-year period, an asset had an arithmetic return of 11.5 percent and a geometric return of 9.4 percent. Using Blumes formula, what is your best estimate of the future annual returns over 4 years? 9 years? 19 years? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
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