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Five years of realized returns for FF are given in the following table. Remember: While FF was started 4 0 years ago, its common stock
Five years of realized returns for FF are given in the following table. Remember:
While FF was started years ago, its common stock has been publicly traded for the past years.
The returns on its equity are calculated as arithmetic returns.
The historical returns for FF for to are:
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 to on FFs stock to continue into the future, its coefficient of variation CV will be
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