Home / Questions / Forecasting Returns You have found an asset with a 12 60percent arithmetic average return ...
Forecasting Returns. You have found an asset with a 12.60percent arithmetic average return and a 10.24 percent geometricreturn. Your observation period is 40 years. What is your bestestimate of the return of the asset over the next 5 years, 10years, and 20 years?
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