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 risk of a stock. Five years of realized returns for Happy Dog Soap (HDS) Inc. are given in the following table. Remember: While HDS 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. Given the preceding data, the average realized return on HDS's stock is. Based on economic conditions, you've compiled the following information with estimates of returns from HDS's stock and the probabilities associated with the economic condition for the next year: Using this information, calculate the standard deviation of returns from Happy Dog Soap's stock. 4.99% 43.96% 5.20% 24.85% If investors expect the average realized return on HDS's stock from 2011 to 2015 to continue into the future, what will be its coefficient of variation (v)? 3.02 1.88 1.63 1.37 Suppose you need to invest $10, 000 in Happy Dog Soap Inc. or another company called Robonomics Corp. You know that Robonomics Corp. has a coefficient of variation of 3.26, and you have calculated the coefficient of variation for HDS. 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? Happy Dog Soap (HDS) Inc. Is two times more risky than Robonomics Corp. Robonomics Corp. Is two times more risky than Happy Dog Soap (HDS) Inc