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 future results.

Analysts across companies use realized stock returns to estimate the risk of a stock.

Five years of realized returns for Celestial Crane Cosmetics Inc. $($Crane Cosmetics$)$ are given in the following table:

Also note that:

While Crane Cosmetics was started $40$ years ago, its common stock has been publicly traded for the past $25$ years.

The returns on Crane Cosmetics's equity are calculated as arithmetic returns.

Given this return data, the average realized return on Celestial Crane Cosmetics Inc.$\text{'}$s stock is

The preceding data series represents a sample of Crane Cosmetics's historical returns. Based on this conclusion, the standard deviation of Crane

Cosmetics's historical returns is

If investors expect the average realized return on Celestial Crane Cosmetics Inc.$\text{'}$s stock from $2016$ to $2020$ to continue into the future, its expected

coefficient of variation $($CV$)$ is expected to equal

Assignment: Chapter $08$ Risk and Rate of Return

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 future results.

Analysts across companies use realized stock returns to estimate the risk of a stock.

Five years of realized returns for Celestial Crane Cosmetics Inc. $($Crane Cosmetics$)$ are given in the following table:

Also note that:

While Crane Cosmetics was started $40$ years ago, its common stock has been publicly traded for the past $25$ years.

The returns on Crane Cosmetics's equity are calculated as arithmetic returns.

Given this return data, the average realized return on Celestial Crane Cosmetics Incis stock is

The preceding data senies represents a sample of Crane Cosmetics's historical returns. Based on this conclusion, the standard deviation of Crane

Cosmetics's historical returns is

If investors expect the average realized return on Celestial Crane Cosmetics Inc's stock from $2016$ to $2020$ to continue into the future, its expected

coefficient of variation $($CV$)$ is expected to equal $,.$