Assignment: Chapter 08 Fisk and Rate of Return Returns eamed over a given time period are called realized returns. Restorical data on reallzed returns is often used to estimate future rewilts. Analysts across companies use realized stock returns to estimate the risk of a stock. Ave years of realized returns for Falcon frelght ine. (Falcon) are given in the follsaing table: Ase note that: 1. While Falcon was started 40 years ago, its common stock has been publidy traded for the past 25 year. 2. The returns on Falcon's equity are caleulated as arithetic returns. Gven this return data, the average realited retum on Falcon Freight the. 's stock is The preceding data series represents a sample of Falcon's historical return. Based on this conclusion, the standard deviation of Falcen's historical returns is If investors expect the average realized return on Fakcon Freight Inc.'s stock from 2016 to 2020 to continue into the future, its expected coefficient of varlation (CV) is expected to equal