4. Measuring standalone risk using realized data Returns earned over a given time period are called realized returns. Historical data on realized returns is often used to estimate futur results. 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: Also note that: 1. While Happy Dog was started 40 vears a00, its common stock has been publicly traded for the past 25 vears. 2. The returns on Happy Doo's equity are calculated as arithmetic returns. Gluen this return data, the average realized return on Happy Dog Soap incis stock is The preceding data series represents a sample of Happy Dog's historical returns. Based on this conciusion, the standard deviation of Happy Dogl historlcal returns is Assignment: Chapter 08 Risk and Rate of Return Also note that: 1. While Happy Dog was started 40 years ago, its common stock has been publicly traded for the past 25 years. 2. The returns on Happy Dog's equity are calculated as arithmetic returns. Gven this return data, the average realized return on Happy Dog Soap inc's stock is The preceding data series represents a sample of Happy Dog's historical returns. Base 22 22.86% historical returns is If investors expect the average realized return on Happy Dog soap incis stock from : of varlation (CV) is expected to equal onclusion, the standard deviation of Happy Dog's 28.58% 11.43% 35.43% Assignment: Chapter 08 Risk and Rate of Return Also note that: 1. While Happy Dog was started 40 years ago, its common stock has been publicly traded for the past 25 years. 2. The returns pouracouno's equity are calculated as arithmetic returns: historical returns is If investors expect the average realized return on Happy 000 Soap Incis stock from 2016 to 2020 to continue into the future, its expected coefficient of variation (CV) is expected to equal Continue without Mving Assignment: Chapter 08 Risk and Rate of Return Also note that: 1. While Happy Dog was started 40 years ago, its common stock has been publicly traded for the past 25 years: 2. The returns on Happy Dog's equity are calculated as arithmetic returns