During the past 12 years, a common stock has produced an arithmetic average return of 12.6 percent and a geometric average return of 12.3 percent. What is the projected return on this stock for the next five years according to Blume's formula?Multiple Choice11.70%О12.03%11.89%12.49%12.12%

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Answered: During the past 12 years, a common…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 17P

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During the past 12 years, a common stock has produced an arithmetic average return of 12.6 percent and a geometric average return of 12.3 percent. What is the projected return on this stock for the next five years according to Blume's formula? Multiple Choice 11.70% О 12.03% 11.89% 12.49% 12.12%