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