Question
Over a 40-year period an asset had an arithmetic return of 12.5 percent and a geometric return of 10.4 percent. Using Blumes formula, what is
Over a 40-year period an asset had an arithmetic return of 12.5 percent and a geometric return of 10.4 percent. Using Blumes formula, what is your best estimate of the future annual returns over 7 years? 11 years? 20 years?
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The Financial System Financial Regulation And Central Bank Policy
Authors: Thomas F. Cargill
1st Edition
1107035678, 9781107035676
