Over a 25-Year Period an Asset Had an Arithmetic Return

question 74

Multiple Choice

Over a 25-year period an asset had an arithmetic return of 13.1 percent and a geometric return of 12.6 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) 13.04 percent
• C) 11.84 percent
• D) 12.91 percent
• E) 12.46 percent

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Definitions:

Ethnic Profiling

The use by law enforcement of an individual's race or ethnicity as a key factor in deciding whether to engage in enforcement (e.g., make a traffic stop or arrest).

Religious Profiling

The practice of subjecting people to increased security or scrutiny based on their religion or beliefs, often resulting in discrimination or prejudice.

Unintended Consequence

An outcome of an action or decision that was not anticipated or intended, often impacting the original goals or plans.

Fundamentalists

Individuals or groups with strict adherence to the basic principles of any subject or discipline, often in a religious context.