1. Measuring stand-alone risk using realized (historical) data Returns earned over a given time Analysts across companies alled returns. Historical data on realized returns is often used to estimate future results. estimate the risk of a stock. Consider the case of Celestial Five years of realized returns llowing table. Remember: has been publicly traded for the past 25 years. 3. The 2014 17.50% Stock return Given the preceding data, the average CCC's stocks of CCC's historical returns. Based on this conclusion, the standard deviation of CCC's The preceding data series represents historical returns is If investors expect the average realized return from 2014 to 2018 on CCC's stock to continue into the future, its coefficient of variation (CV) will be eturns earned over a given time period are called realized returns. Historical data on realized returns is often used to estimate future results. .nalysts across companies use realized stock returns to estimate the risk of a stock. Consider the case of Celestial Crane Cosmetics Inc. (CCC): Five years of realized returns for CCC are given in the following table. Remember: 1. While CCC 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 CCC for 2014 to 2018 are: 2014 17.50% 2015 11.90% 2016 21.00% 2017 29.40% 2018 9.10% Stock return Given the preceding data, the average realized return on CCC's stock is of CCC's his 55.12% ns. Based on this conclusion, the standard deviation of CCC's The preceding data series represents historical returns is 44.45% o continue into the future, its coefficient of variation (CV) will be 17.78% If investors expect the average realized return from 2014 to 2018 on cd 35.56% ive years of realized returns for CCC are given in the following table. Remember: 1. While CCC 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 CCC for 2014 to 2018 are: 2014 17.50% 2015 11.90% 2016 21.00% 2017 29.40% 2018 9.10% Stock return the universe the population Given the preceding data, the averag on CCC's stock is sample of CCC's historical returns. Based on this conclusion, the standard deviation of CCC's The preceding data series represents historical returns is Ir investors expect the average rated return from 2014 to 2018 on CCC's stock to continue into the future, its coefficient of variation (CV) will be 1. Measuring stand-alone 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 Celestial Crane Cosmetics Inc. (CCC) Five years of realized returns for COC are given in the following table. 1. While CCC was started 40 years ago, its common stock has been publicly trade 2. The returns on its equity are calculated as arithmetic return 3. The historical returns for coC for 2014 to 2018 are: 2014 17.50 2015 11.90% 2016 21.00% 201 2 Stock return 0.83 preceding data, the average realized return on CCC's stock is 0.45 of CCC's historical returns. Based on this conclusion, the standard deviation of CCC's eding data series represents returns is 0.52 brs expect the average read return from 2014 to 2018 on CCC's stock to continue into the future, its coefficient of variation (CV) will be