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 Blue Llama Mining Inc. (Blue Llama) are given in the following table:

2012 2013 2014 2015 2016 Stock return 5.00% 3.40% 5.00% 8.40% 2.60% Also note that: 1. While Blue Llama was started 40 years ago, its common stock has been publicly traded for the past 25 years. 2. The returns on Blue Llama's equity are calculated as arithmetic returns