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Assignment 08 - Risk and Rates of Return Act Due on Tomorrow at 11:59 PM PST Assignment 08 - Risk and Rates of Return Due
Assignment 08 - Risk and Rates of Return Act Due on Tomorrow at 11:59 PM PST
Assignment 08 - Risk and Rates of Return Due on Tomorrow at 11:59 PM PST < Back to Assignment Attempts: Keep the Highest: / 4 2. 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. Consider the case of Falcon Freight Inc. (FF): Five years of realized returns for FF are given in the following table. Remember: While FF was started 40 years ago, its common stock has been publicly traded for the past 25 2. 3. years. The returns on its equity are calculated as arithmetic returns. The historical returns for FF for 2012 to 2015 are: Stock return 2012 7.50% 2013 5.10% 2014 9.00% 2015 12.60% 2016 3.90%
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