3. Measuring stand-alone risk using realized (historical) data Returns earned over a given time period are calied reakred retums. Historical data on realized returns is often used to estimate future results. Analysts across companies use realized stock returns to estimate the risk of a stock. Consider the case of Happy Dog Soap Inc. (HDS): Five vears of realized returns for HDS are given 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 caiculated as arithmetic retums. 3. The historical returns for HOS for 2014 to 2018 are: Given the preceding data, the average realized return on HDS's stock is The preceding data series represents of HDS's historical returns. Based on this conclusion, the standard deviation of HOS'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 coefncient of variation (CV) will be