Question: Returns eamed over a given time period are called reared returns. Historical data on realized returns is often used to estimate future results Analysts across

 Returns eamed over a given time period are called reared returns.

Returns eamed over a given time period are called reared 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. Consider the case of Celestial Crane Cosmetics Inc (CCC) Five years of realized returns for CCC are given in the following table. Remember: 1. While ccc was started 40 years ago, its common stock has been publicy traded for the past 25 years, 2. The returns on its equity are calculated an Iritmetic return 3. The historical returns for ecc for 2014 to 2018 are: 2015 2014 5,00 2016 2017 6.00% 8:40 2018 2.60% Stock return 3.40% Given the preceding data, the average realized return on CCC's stock is of CCC's historical returns. Based on this conclusion, the standard deviation of CCCS The preceding data series represents historical returns is Il investors expect the average realized return from 2014 to 2018 on CCC's stock to continue into the future, its coefficient of variation (CV) will be

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