2. Measuring stand-alone risk using realized (historical)data Retums earned over a given time period are called realied rehums. 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 Cedestial Crane Cosmetics inc (COC): Five years of realized returns for CCC are given in the following table. Remember: 1. While coc was started 40 years ago, its common stock has been publidy traded for the past 25 years: 2. The retums on its equity are calculated as arthmetic returns 3. The historical returns for CCC for 2014 to 2018 are: Given the preceding data, the average realued retum on CCC's stock is The precoding dato senes represems of CCCs historical returns, Based on this condusion, the standard deviation of CCCs historical returns is If invedors expect the avenge realiend retum from 2014 to 2018 on cocss stock to contanue into that future, its coefficent of variation (CV) will be 2. 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 CCC are given in the following table. Remember: 1. While CCC was started 40 years ago, its common stock has been publich 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