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A Stock Has a Geometric Average Return of 14

Question 93

Multiple Choice

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

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