3. Measuring standalone risk using realized (historical) data Returns earned over a given time period ore called realized retums. Historical data on realized returns is often used to estimate future resuits. Analysts across companies use realized stock 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 following table. Remember: 1. While fF was started 40 years ago, its common stock has been publicly traded for the past 25 years. 2. The retums on its equity are calculated as arithmetic returns. 3. The historical returns for FF for 2012 to 2016 are: Given the preceding dato, the average realized return on FF's stock is The preceding data series represents returns is If investors expect the average realized return from 2012 to 2016 on FF s stock to continue into the future, its coafficient of variation (CV) will be