Arithmatic average return-estimate of the return of asset

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You have found an asset with a 12.60 percent arithmatic average return and a 10.24 percent geometric return. Your observation period is 40 years. What is your best estimate of the return of the asset over the next 5 years? 10 years? 20 years?

Reference no: EM131011624

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Arithmatic average return-estimate of the return of asset : You have found an asset with a 12.60 percent arithmatic average return and a 10.24 percent geometric return. Your observation period is 40 years. What is your best estimate of the return of the asset over the next 5 years? 10 years? 20 years?

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