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 Consider the case of Falcon Freight Inc. (FF): Five years of realized returns for FF are given in the following table. Remember: 1. While FF was started 40 years ago, its common stock has been publicly traded for the past 25 years 2. The returns on its equity are calculated as arithmetic returns 3. The historical retums for FF for 2012 to 2016 are: 2013 2015 2016 2012 20.00% 2014 24.00% Stock return 13.60% 33.60% 10.40% Given the preceding data, the average realized return on FF's stock is Consider the case of Falcon Freight Inc. (F): Five years of realized returns for FF are given in the following table. Remember: bols 1. While FF was started 40 years ago, its common stock has been publicly traded for the past 25 years 2. The returns on its equity are calculated as arithmetic returns 3. The historical returns for FF for 2012 to 2016 are: 2012 2013 2014 2016 Stock retum 20.00% 2015 33.60% 13.60% 24.00 10.40% Given the preceding data, the average realized retum on FPX stock is The preceding data series represents returns is of FFs historical return Based on this conclusion, the standard deviation of historical 1 investors expect the average realed return from 2012 to 2016 on FF stock to continue into the future, its coefficient of variation (CV) will be