1. Measuring stand-alone risk using realized (historical) data Returns earned over a given time period are called reaikzed retums. 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. (BLM): Five vears of reatlzed returns for BCM are given in the following table, Remember: 1. While BLM was started 40 years ago, its common stock has teen publicly traded for the past 25 years. 2. The returns on its equity are calculated as anthanetic returns. 3. The historical returns for buM for 2014 to 2018 are: Given the preceding dota, the average realiped return on fuM's stock is The preceding dats series represents of BLMS historical returns. Based on this conclusian, the standard deviation of BLMS historical teturns is If investors expect the averoge realized return from 2014 to 2018 on BLMs stock to continue into the future, its coefficient of variabon (CV) wil be 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 conclusion, the standard deviation of BLM's historical returns is If investors expect the average realized retum from 2014 to 2018 on BLM's stock to continue into the future, its coefficient of variation (CV) will be