Over the past fifteen years, the common stock of The Flower Shoppe, Inc. has produced an arithmetic average return

Over the past fifteen years, the common stock of The Flower Shoppe, Inc. has produced an arithmetic average return of 12.2 percent and a geometric average return of 11.5 percent. What is the projected return on this stock for the next five years according to Blume's formula?    A.  11.70 percent B.  11.89 percent C.  12.00 percent D.  12.03 percent E.  12.12 percent

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Based on past 23 years, Westerfield Industrial Supply's common stock has yielded an arithmetic average rate of return of 10.5 percent. The geometric average return for the same period was 8.57 percent. What is the estimated return on this stock for the next 4 years according to Blume's formula?    A.  8.70 percent B.  8.92 percent C.  9.13 percent D.  9.38 percent E.  10.24 percent

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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

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Suppose a stock had an initial price of $80 per share, paid a dividend of $1.35 per share during the year, and had an ending share price of $87. What was the capital gains yield?    A.  1.55 percent B.  1.69 percent C.  8.05 percent D.  8.75 percent E.  10.44 percent Capital gains yield = ($87 - $80)/$80 = 8.75 percent