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 resuits. Analysts across companies use realized stock returns to estimate the risk of a stock. Consider the case of Happy Dog Soap Inc. (HDS): Five years of realized returns for HDS are glven in the following table. Remember: 1. While HDS 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 HDS for 2014 to 2018 are: Given the preceaing data, the average realized return on HDS's stock is Given the preceding data, the average realized return on Hos's stock is The preceding dato series represents of HOS's historical retums. Based on this conclusion, the standard deviation of HDS's historical returns is If investors expect the average realized return from 2014 to 2018 on HDS's stock to continue into the future, its coefficient of variation (CV) wil be