measuring standalone risk using realized data

4. Measuring standalone risk using realized data Retumseamed 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. Five years of realized returns for Blue Llama Mining Ine. (Blue Llama) are given in the following table: 2016 17.50% Stock return 2017 11.90% 2018 21.00% 2019 29.40% 2020 9.10% Also note that: 1. While Blue Liama was started 40 years ago, its common stock has been publicly traded for the past 25 years. 2. The returns on Blue Lama's equity are calculated as arithmetic returns. Given this return data, the average realized retum on Blue Lama Mining Inc stock is The preceding data senes represents a sample of the Lama's historical returns. Based on this conclusion, the standard deviation of Blue Lama's istorical retums If investors expect the average realed return on Blue Lama Mining Inc.'s stock from 2016 to 2020 to continue Into the future, its expected coefficient of variation (CV) is expected to equal