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 use realized stock returns to estimate the risk of a stock. Consider the case of Blue Lama Mining Inc, (BLM): Five years of realized returns for BLM are glven in the following table. Remember: 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 retums, 3. The historical returns for BLM for 2014 to 2018 are: Given the preceding dats, the average realized return on BLM's stock is The preceding data senes represents of BtM's historical returns, Eased on this conclusion, the standard deviation of BLM's historical returns is If Investors expect the average reatized return from 2014 to 2018 on BtM's stock to continue into the future, its coefricient of variation (CV) will be