Question
Five years of realized returns for Happy Dog Soap Inc. (Happy Dog) are given in the following table: 2012 2013 2014 2015 2016 6.25% 4.25%
Five years of realized returns for Happy Dog Soap Inc. (Happy Dog) are given in the following table:
2012 2013 2014 2015 2016
6.25% 4.25% 7.50% 10.50% 3.25%
Also note that:
- While Happy Dog was started 40 years ago, its common stock has been publicly traded for the past 25 years.
- The returns on Happy Dog's equity are calculated as arithmetic returns.
Given this return data, the average realized return on Happy Dog Soap Inc.'s stock is_______.
The preceding data series represents _______ of Happy Dog's historical returns. Based on this conclusion, the standard deviation of Happy Dog's historical returns is______.
If investors expect the average realized return on Happy Dog Soap Inc.'s stock from 2012 to 2016 to continue into the future, its expected coefficient of variation (CV) is expected to equal.______
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