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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

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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 equity are calculated as arithmetic returns. 3. The historical returns for FF for 2012 to 2016 are: 2012 2013 2014 2015 2016 Stock return 23.75% 16.15% 28.50% 39.90% 12.35% Given the preceding data, the average realized return on FF's stock is The preceding data series represents standard deviation of FF's historical returns is of FF's historical returns. Based on this conclusion, the 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

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