Using the historical approach what is the estimate of defs


Suppose that over the last 25 years, company DEF has averaged a return of 9.5%.  Over the same period, the Treasury bond rate has averaged 6.5%.  The current estimate of the Treasury bond rate is 4%.  Using the historical approach, what is the estimate of DEF’s expected return.

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Financial Management: Using the historical approach what is the estimate of defs
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