A stock has a geometric average return of 14.6 percent and an arithmetic average return of 15.5 percent based on the last 33 years.What is the estimated average rate of return for the next 6 years based on Blume's formula?
A) 14.79 percent
B) 14.96 percent
C) 15.28 percent
D) 15.36 percent
E) 15.42 percent
Correct Answer:
Verified
Q81: You find a certain stock that had
Q82: How can an investor lose money on
Q83: You want to invest in an index
Q84: Suppose you bought a 10 percent coupon
Q85: Define and explain the three forms of
Q87: Assume that the returns from an asset
Q88: What are the two primary lessons learned
Q89: You've observed the following returns on Crash-n-Burn
Q90: You've observed the following returns on Crash-n-Burn
Q91: A stock had returns of 12 percent,16
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents