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Measuring risk using realized data (Answer all please) For fill in the blank - 34.93, 13.97, 27.94 or 43.31 The rest are multiple choice. Select

image text in transcribedMeasuring risk using realized data (Answer all please)

For fill in the blank - 34.93, 13.97, 27.94 or 43.31

The rest are multiple choice. Select the best answer. Thanks

3. Measuring risk using realized data Aa Aa Returns earned over a given time period are called realized returns. Historical data on realized returns is often used to estimate future results. Analysts across companies use realized stock returns to estimate the ri Five years of realized returns for Falcon Freight (FF) Inc. 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. 2011 2012 2013 2014 2015 Stock return 13.75% 9.35% 16.50% 23.10% 7.15% Given the preceding data, the average realized return on FF's stock is Based on economic conditions, you've compiled the following information with estimates of returns from FF's stock and the probabilities associated with the economic condition for the next year: Market Condition Probability FF's (ri) Boom 0.20 48% Normal 29% 0.35 Recession 0.45 38% Using this information, calculate the standard deviation of returns from Falcon Freight's stock. O 37.39% O 66.36% 6.12% O 6.25% If investors expect the average realized return on FF's stock from 2011 to 2015 to continue into the future, what will be its coefficient of variation (v)? O 3.08 O 2.68 O 4.96 O 2.25 Suppose you need to invest $10,000 in Falcon Freight Inc. or another company called Robonomics Corp. You know that Robonomics Corp. has a coefficient of variation of 5.36, and you have calculated the coefficient of variation for FF. In order to make your investment decision, you spend some time analyzing the situation. Based on your analysis, which of the following statements is true? O Falcon Freight (FF) Inc. is two times more risky than Robonomics Corp O Robonomics Corp. is two times more risky than Falcon Freight (FF) Inc

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