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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

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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 realized 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 2014 to 2018 are: 2014 7.509 2015 5.104 2016 9.00% 2017 12.50 2018 3.00 Stock return ory Given the preceding data, the average realized return on FF stock is of historicum sed on this condus on the standard deviation of Fire The preceding data storesents retur Given the preceding data, the average realized return on FF's stock is The preceding data series represents returns is of FF's historical returns. Based on this conclusion, the standard deviation of FF's historical If investors expect the average realized return from 2014 to 2018 on FFs stock to continue into the future, its coefficient of variation (CV) will be Grade it Now Save & Continue Continue without saving

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