Answered step by step
Verified Expert Solution
Question
1 Approved Answer
can you answer these questions 3. Measuring stand-alone risk using realized (historical) data x bols Returns earned over a given time period are called alled
can you answer these questions
3. Measuring stand-alone risk using realized (historical) data x bols Returns earned over a given time period are called alled returns Historical data on edes tened to estimate future Analysts across companies se realized stock returns to estimate the risk of stock Consider the case of Falcon Freight Inc. (EF): Five years of realized retums for FF are given in the following table. Remember: 1. While FF was started 40 years ago, its common stock has been publidy traded for the past 25 years 2. The returns on its equity are calculated as arithmetic returns 3. The historical returns for FF for 2014 to 2018 aru Full Book ory 2014 2016 2015 2.55 2017 2018 6.309 1.95% Stock return 3759 4.50 Given the preceding data, the average realized return on FF sodels of Fistorical return Based on this conclusion the standard deviation of histon The preceding data series represents returnsis 66F Mostly clear 20 PM 10/13202 TUI Ch 08: Assignment - Risk and Rates of Return Q Is 1. While FF was started 40 years ago, its common stock has been publidy traded for the past 25 years. 2. The returns on its equity are calculated as arithmetic returns 3. The historical returns for FF for 2014 to 2018 are: 2014 2015 2017 Stock return 2016 4.50% 3.75% 2.55% 2018 1.95 6.30" Given the preceding data, the average realized return on FF's stockis Ty The preceding data series represents returns is of it's historical returns. Based on this conclusion, the standard deviation at ts historical If investors expect the average realized return from 2014 to 2018 on Fe's stock to continue into the future, its coefficient of variation (1) will be Grade it Now Save & Continue Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started