Over a 38-year period an asset had an arithmetic return of 12.4 percent and a geometric return of 10.3 percent. Using Blume’s formula, what is your best estimate of the future annual returns over 6 years? 10 years? 19 years?

Blume's formula combines the geometric and arithmetic means of an asset to be able to predict its returns in a given period.

The formula is;

= Geometric Mean*(T-1)/(N-1) + Arithmatic Mean *(N-T)/(N-1)

Where,

T = Period in question

N = Total period

6 years

= 10.3%*(6-1)/(38-1) + 12.4%*(38-6)/(38-1)

= 12.1 %

10 years

= 10.3%*(10-1)/(38-1) + 12.4%*(38-10)/(38-1)

= 11.89%

19 years

= 10.3%*(19-1)/(38-1) + 12.4%*(38-19)/(38-1)

= 11.38%

idk sorry

explanation:

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.