Returns earned over a given time period are called realized returns. Historical data on realized returns...

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Finance

Returns earned over a given time period are called realizedreturns. Historical data on realized returns is often used toestimate future results. Analysts across companies use realizedstock 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 followingtable. Remember:
1. While FF was started 40 years ago, its common stock has beenpublicly traded for the past 25 years.
2. The returns on its equity are calculated as arithmeticreturns.
3. The historical returns for FF for 2012 to 2016 are:
2012
2013
2014
2015
2016
Stock return 21.25% 14.45% 25.50% 35.70% 11.05%
Given the preceding data, the average realized return on FF’sstock is----- .
The preceding data series represents--- of FF’s historicalreturns. Based on this conclusion, the standard deviation of FF’shistorical returns is -- --- .
If investors expect the average realized return from 2012 to2016 on FF’s stock to continue into the future, its coefficient ofvariation (CV) will be ----- .

	2012	2013	2014	2015	2016
Stock return	21.25%	14.45%	25.50%	35.70%	11.05%

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Returns earned over a given time period are called realizedreturns. Historical data on realized returns is often used toestimate future results. Analysts across companies use realizedstock 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 followingtable. Remember:1.While FF was started 40 years ago, its common stock has beenpublicly traded for the past 25 years.2.The returns on its equity are calculated as arithmeticreturns.3.The historical returns for FF for 2012 to 2016 are:20122013201420152016Stock return21.25%14.45%25.50%35.70%11.05%Given the preceding data, the average realized return on FF’sstock is----- .The preceding data series represents--- of FF’s historicalreturns. Based on this conclusion, the standard deviation of FF’shistorical returns is -- --- .If investors expect the average realized return from 2012 to2016 on FF’s stock to continue into the future, its coefficient ofvariation (CV) will be ----- .

1.	While FF was started 40 years ago, its common stock has beenpublicly traded for the past 25 years.
2.	The returns on its equity are calculated as arithmeticreturns.
3.	The historical returns for FF for 2012 to 2016 are: