3. 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 OCC are given in the following table. Remember: 1. While coc 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 2015 2016 2017 2018 Stock return 21.25% 14.45% 25.5096 35.70% 11.05% 2014 2015 2016 2017 2018 Stock return 21.259 14.45% 25,50% 35.7096 11.05 Given the preceding data, the average realized return on CCC's stock is of coc'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 or variation (CV) will be Given the preceding data, the average realized return on CCC's stock is of CCC's his The preceding data series represents historical returns is 66.93% ns. Based 53.98% 43.18% If investors expect the average realized return from 2014 to 2018 on cd o continue 21.59% 2014 2015 2016 2017 2018 Stock return 21.259 14.45% 25.50% 35.70% 11.05% a sample the population Given the preceding data, the averag bn CCC's stock is the universe The preceding data seles represents of CCC's historical returns. Based on this conclusion, the standard deviation of CCC's historical returns is il investors expect the average realized return from 2014 to 2018 on CCC's stock to continue Into the future, Itn coefficient of variation (CV) will be 2014 2015 2016 2017 2018 Stock return 14.45% 25.50% 35.7096 11.05% 2125 7.47% 8.68% Given the preceding 13.10% pverage realized return on CCC's stock is 9.70% esents The preceding data historical returns is of CCC's historical returns. Based on this conclusion, the standard deviation of CCC'S Ir 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 40.45 e preceding data, the average realized return on CCC's stock is 0.52 Jeding data series represents 0.83 returns is of CCC's historical returns. Based on this conclusion, the standard deviation of CCC's 0.38 ess 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