4. Measuring standalone risk using realized 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 Five years of realized returns for Happy Dog Soap Inc. (Happy Dog) are given in the following table 2012 2013 2014 2015 2016 Stock return 20.00% 13.60% 24.00% 33.60% 10.40% Also note that: 1. While Happy Dog was started 40 years ago, its common stock has been publicly traded for the past 25 years. 2. The returns on Happy Dog's equity are calculated as arithmetic returns