4. Measuring standalone risk using realized data Returns earned over a given time period are called realized returns. Historical data on reallred returns is often used to estimate future results. Analysts across companies use realized stock returns to estimate the risk of a stock Fhe years of realized returns for Happy Dog Soap Inc. (Happy Dog) are given in the following table: 2013 2012 10.00 2014 12.00% 2015 16.80% 2016 5.20W Stock return 6.80% 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 Given this return data, the average realized re d return on Happy Dog Soap Inc.'s stock is The preceding data series represents of Happy Dog's historical returns used on this conclusion, the standard deviation et Happy Dog's historical returns is _ If investors expect the average realed return on Happy Dog soap Inc.'s stock from 2012 to 2016 to continue into the Nature, its expected coefficient of variation (CV) is expected to equal Save & Continua 4. Measuring standalone risk using realized data Returns eamed over a given time period are called realized 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 Five years of realized returns for Happy Dog Soap Inc. (Happy Dog) are given in the following table: 2014 2012 10.00% 2013 6.80% 2015 16.80% 2016 5,20% Stock return 12.00 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. Given this return data, the average realized return on Happy Dog Soap Inc.'s stock is of Happy Dog's historical The preceding data series represents Happy Dog's historical returns is 20.32 ped on this conclusion, the standard deviation of 31.50% 10.16% 6 to continue into the future, its expected coefficient If investors expect the average realized return on Happy Dog Soap Inc.'s stock from of variation (CV) is expected to equal 25.40% Save & Continue 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. the population the universe Given this return data, the average re Happy Dog Soap Inc.'s stock is a sample of Happy Dog's historical returns. Based on this conclusion, the standard deviat The preceding data series represents Happy Dog's historical returns is If investors expect the average realized return on Happy Dog Soap Inc.'s stock from 2012 to 2016 to continue into the future, its expected of variation (CV) is expected to equal 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 coming calculated as arithmetic returns. 4.5660% 3.5158% Given this return data, the avera 6.1641% feturn on Happy Dog Soap Inc.'s stock is 4.0839% The preceding data series repres Happy Dog's historical returns is of Happy Dog's historical returns. Based on this conclusion, the If investors expect the average realized return on Happy Dog Soap Inc.'s stock from 2012 to 2016 to continue into the futur of variation (CV) is expected to equal Given this return data, the average re 0.5168 urn on Happy Dog Soap Inc.'s stock is 0.4494 of Happy Dog's historical returns. Based on this com The preceding data series represents Happy Dog's historical returns is 0.8314 0.3775 If investors expect the average realize bn Happy Dog Soap Inc.'s stock from 2012 to 2016 to continu of variation (CV) is expected to equal
