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1. While FF was started 40 years ago, its common stock has been publicly traded for the past 25 years. 2. The returns on its

image text in transcribed 1. While FF was started 40 years ago, its common stock has been publicly traded for the past 25 years. 2. The returns on its equity are calculated as arithmetic returns. 3. The historical returns for FF for 2014 to 2018 are: Given the preceding data, the average realized return on FF's stock is The preceding data series represents returns is If investors expect the average realized return from 2014 to 2018 on FF's stock to continue into the future, its coefficient of variation (CV) will be of FF's historical returns. Based on this conclusion, the standard deviation of FF's historical of be

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