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Estimates of the rate of return on a security based on the historical arithmetic average...

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Accounting

Estimates of the rate of return on a security based on the historical arithmetic average will probably tend to the expected return for the long-term and estimates using the historical geometric average will probably tend to q, the expected return for the short-term.
Multiple Choice
overestimate; overestimate
overestimate, underestimate
underestimate; overestimate
underestimate; underestimate
accurately estimate; accurately estimate
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