The primary purpose of Blume's formula is to:
A) compute an accurate historical rate of return.
B) determine a stock's true current value.
C) consider compounding when estimating a rate of return.
D) determine the actual real rate of return.
E) project future rates of return.

Question

Quizplus · Accepted Answer

Blume's formula is used to adjust historical returns to better estimate future rates of return, particularly over different time horizons.

The Primary Purpose of Blume's Formula Is To