Sa lone risk using realized (historical) data 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 Blue Lama Mining Inc. (BM): Five years of realized returns for BM are given in the following table. Remember: 1. While BLM 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 BLM for 2012 to 2016 are: Stock return 2012 20.00% 2013 13.604 2014 24.00% 2015 33.609 2016 10.40% Given the preceding data, the average realized return on BLM's stock is The preceding data series represents of BLM's historical returns. Based on this condusion, the standard deviation of Bus Neturn Five years of realized returns for BLM are given in the following table. Remember: 1. While BLM 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 BLM for 2012 to 2016 are: 2012 20.00% Stock return 2013 13.60% 2014 24.00% 2015 33.60% 2016 10.40% Given the preceding data, the average realized return on BLM's stock is The preceding data series represents historical returns is of BLM's historical returns. Based on this conclusion, the standard deviation of BLM's If investors expect the average realized return from 2012 to 2016 on BLM's stock to continue into the future, its coefficient of variation (CV) will be Grade It Now Save & Continue