fleturns esmed over a given time period are called reanized refurns. Historical dath on realized returns is often used to estimate future results. Analysts acrost companies use realized stock returns to estimate the risk of a stock. 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 yesars 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 histotical returns for FF for 2014 to 2018 are: Grven the preceding dare, the average realized return on fr's stock is The preceding data series represents returne is of F's historical retums, Based on this conclusion, the standard devistion of FF's historical If investors expect the averape realized return from 2014 to 2018 an FF 's stock to continue into the future, as coefficient of variation (CV) wil be