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.

Question

Quizplus · Accepted Answer

Blume's formula is used to predict future rates of return by adjusting historical returns to account for the time horizon.

Blume's Formula Is Used To