Estimate of the future annual returns

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Reference no: EM13919712

Over a 30-year period an asset had an arithmetic return of 13 percent and a geometric return of 10.5 percent. Using Blume's formula, what is your best estimate of the future annual returns over the next 10 years?

a. 11.18 percent

b. 12.04 percent

c. 11.84 percent

d. 12.22 percent

e. 12.46 percent

Reference no: EM13919712

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