Blume's Formula Is Used To

question 24

Multiple Choice

Blume's formula is used to:

• A) predict future rates of return.
• B) convert an arithmetic average return into a geometric average return.
• C) convert a geometric average return into an arithmetic average return.
• D) measure past performance in a consistent manner.
• E) compute the historical mean return over a multi-year period of time.

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Definitions:

Crowd

A large group of people gathered together, typically in a disorganized or unruly way.

Prosocial

Behavior that is intended to benefit others, including acts of kindness, sharing, and cooperating.

Antisocial

Behavior that opposes the societal norms, exhibiting disregard for the well-being of others.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms or expectations.