Measuring stand$-$alone risk using realized $($historical$)$data

turns earned over a given time period are called realized returns. Historical data on realized returns is often used to estimate future results. nalysts across companies use realized stock returns to estimate the risk of a stock.

onsider the case of Falcon Freight Inc. $($FF$)$:

ive years of realized returns for FF are given in the following table. Remember:

While FF was started $40$ years ago, its common stock has been publicly traded for the past $25$ years.

The returns on its equity are calculated as arithmetic returns.

The historical returns for FF for $2014$ to $2018$ are:

$\backslash$table$[[,2014,2015,2016,2017,2018$