3. Measuring stand alone risk using realized (historical) data Returns earned over a given time period are called realized returns. Historical data on realized returns is often used to estimate future results. Analysts across companies se realized stock returns to estimate the risk of a stock. Consider the case of Blue Llama Mining Inc. (BLM): Five years of realized returns for BLM are given in the following table. Remember: 1. While ELM 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 BUM for 2014 to 2018 are: 2014 23.75% 2015 16.15 2016 28.50% 2017 39.90% 2018 12.35% Stock return Given the preceding data, the average realized return on BLM's stock of BUM'S Historical retums. Based on this conclusion, the standard deviation of BLM'S The preceding data series represents historical returns is If investors expect the average realized retum from 2014 to 2018 on stock to continue into the future its coefficient of variation (CV) will be Five years of realized returns for BLM are given in the following table. Ren 1. While BLM 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 BLM for 2014 to 2018 are: 2014 2015 2016 2017 39.90% 2018 12.35% Stock return 23.75% 16.15% 28.50% Given the preceding data, the average realized return on BLM's stock is of BLM's historical returns. Based on this conclusion, the standard deviation of BLM's The preceding data series represents historical returns is If investors expect the average realized return from 2014 to 2018 on BLM's stock to continue into the future, its coefficient of variation (CV) will be