Five years of realized returns for FF are given in the following table. Remember: 1. While FF was started 40 years ego, its common stock has been publicly traded for the past 75 years.

2. The returns on its equity are calculated as arithmetic returns.

3. The historical returns for FF for 2012 to 2015 are: Given the preceding data, the average realized return on FF's stock is.............. The preceding data series represents ......................... of FF's historical returns. Based on this conclusion, the standard deviation of FF's historical returns is ........................ If investors expect the average realized return from 2012 to 2016 on FF's stock to continue into the future, its coefficient of variation (CV) will be ..........................

Suppose you need to invest $10,000 in Falcon Freight Inc. or another company called Robonomics Corp. You know that Robonomics Corp. has a coefficient of variation of 0.90, and you have calculated the coefficient of variation for FF. To make your investment decision, you spend some time analyzing the situation. Based on your analysis, which of the following statements is true? ? Falcon Freight (FF) Inc. is two times more risky than Robonomics Corp.

? Robonomics Corp. is two times more risky than Falcon Freight (FF) Inc.

2012 2013 2014 2015 2016 Stock return 20.00% 13.60% 24.00% 33.60% 10.40%