3. Measuring standaione risk using realized (historical) data Returns earned over a given time period are called realized retums. Historical data on realized refurns is often used to estimate future results. Analysts across companies use realized stock retums to estimate the risk of a stock. Consider the case of Celestial Crane Cosmetics inc. (CCC): Five years of realized returns for CCC are given in the following table. Remember: 1. While coc was started 40 years ag0, its common stock has been pubicly traded for the past 25 years. 2. The returns on its equity are calculated as arthmete returns. 3. The historical returns for ccc for 2012 to 2016 are: Given the preceding dais, the sverage realized return on ccC's stock is The preceding data series represents of coCs histoncal returns, Based on this condusion, the standerd deviation of CCCS Wistorical returns is If investors expect the average rediced return trom 2012 to 2016 on ccC's stock to continue into the future, its coetlicent of variation (CV) wish