Answer:
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;
<em>= Geometric Mean*(T-1)/(N-1) + Arithmatic Mean *(N-T)/(N-1)
</em>
Where;
T = Period in question
N = Total period
10 years
= 8.3%*(10-1)/(90-1) + 10.3%*(90-10)/(90-1)
= 10.1 %
25 years
= 8.3%*(25-1)/(90-1) + 10.3%*(90-25)/(90-1)
= 9.76%
30 years
= 8.3%*(30-1)/(90-1) + 10.3%*(90-30)/(90-1)
= 9.65%
Answer:
The correct answer is A.
Explanation:
Giving the following information:
A centralized legal department of Exline Company has expenses of $500,000. The department has provided a total of 2,000 hours of service for the period. The Northern Region has used 575 hours of legal service and the Southern Region has used 1,425 hours of legal service during the period.
Total hours= 2,000hours
Southern Region= 1,425/2,000= 0.7125
Total cost= 0.7125*500,000= $356,250
