Question: 4. Measuring standalone risk using realized data Returns eamed over a given time period are called realized returns. Historical data on realized returns is often

4. Measuring standalone risk using realized data Returns eamed over a given time period are called realized returns. 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. Five years of realized returns for Happy Dog Soap Inc. (Happy Dog) are given in the following table: Aso note that: 1. While Happy Dog was started 40 years ago, its common stock has been publiciy traded for the past 25 years. 2. The returns on Happy Dog's equity are calculated as arithmetic returns. Given this return data, the average realized return on Happy Dog Soap Inc.'s stock is The preceding data series represents of Happy Dog's historical returns. Based on this conclusion, the standard deviation of Happy Dog's historical returns is If investors expect the average realized return on Happy Dog Soap inc's stock from 2012 to 2016 to continue into the future, its expected coefficient of variation (CV) is expected to equal

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