Question
Consider the case of Falcon Freight Inc. (FF): Five years of realized returns for FF are given in the following table. Remember: 1. While FF
Consider the case of Falcon Freight Inc. (FF):
Five years of realized returns for FF are given in the following table. Remember:
1. | While FF 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 returns. |
3. | The historical returns for FF for 2012 to 2016 are: |
2012 | 2013 | 2014 | 2015 | 2016 | |
---|---|---|---|---|---|
Stock return | 21.25% | 14.45% | 25.50% | 35.70% | 11.05% |
Given the preceding data, the average realized return on FFs stock is ._________-
The preceding data series represents ________ of FFs historical returns. Based on this conclusion, the standard deviation of FFs historical returns is ._____________
If investors expect the average realized return from 2012 to 2016 on FFs stock to continue into the future, its coefficient of variation (CV) will be __________________
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