4. Mensuring standalone risk using realized data Retum eamed over a given time period are called realized returns. Historical data on realized returns is open used to estimate future results. Analysts across companies use realized stock returns to estimate the risk of a stock Five years of realized returns for Blue Llama Mining Inc. (Blue Llama) are given in the following table: 2012 21.25% 2013 14.45% 2014 25.50% 2015 35,70% Stock return 11.05% Also note that 1. While Blue Llama was started 40 years ago, its common stock has been publidy traded for the past 25 years. 2. The retums on Blue Llama's equity are calculated as arithmetic returns Given this return data, the average realized return on Blue Llama Mining Inc.'s stock is 21.599 The preceding data series represents a sample of Blue Lama's historical returns. Based on this conclusion, the standard deviation of Blue Lama's historical retums is 8.67830 Investors expect the average realced return on blue Llama Mining Incs stock from 2012 to 2016 to continue into the future, is expected coeficient of variation (CV) is expected to equal 0.5163