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Five years of realized returns for BLM are given in the following table. Remember: 1. While BLM was started 40 years ago, its common stock
Five years of realized returns for BLM are given in the following table. Remember:
1. | While BLM 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 BLM for 2014 to 2018 are: |
2014 | 2015 | 2016 | 2017 | 2018 | |
---|---|---|---|---|---|
Stock return | 12.50% | 8.50% | 15.00% | 21.00% | 6.50% |
Given the preceding data, the average realized return on BLMs stock is12.70% .
The preceding data series representsa sample of BLMs historical returns. Based on this conclusion, the standard deviation of BLMs historical returns is .
If investors expect the average realized return from 2014 to 2018 on BLMs stock to continue into the future, its coefficient of variation (CV) will be .
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