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. Consider the case of Falcon Freight Inc. (FF): Five years of realised returns for FF 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. 3. The historical returns for FF for 2012 to 2016 are: Stock return 2012 6.25 2013 4.25 2014 7.50% 2015 10.50% 2016 3.25% O n the preceding data the average realized return on FFs stock The preceding data were represents of FFs historical natura. Based on the conclusion the standard deviation of historical th e re f ore 2012 - 2016 octo continents the future oficent of nation e