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 Happy Dog Soap Inc. $($HDS$)$:

Five years of realized returns for HDS are given in the following table. Remember:

$1.$ While HDS 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 HDS for $2014$ to $2018$ are:

$2014$

$2015$

$2016$

$2017$

$2018$

Stock return $21\mathrm{.}25\%14\mathrm{.}45\%25\mathrm{.}50\%35\mathrm{.}70\%11\mathrm{.}05\%$

Given the preceding data, the average realized return on HDS$$s stock is $\_\_\_\_\_\_\_\_\_\_.$Measuring stand$-$alone risk using realized $($historical$)$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.

Consider the case of Happy Dog Soap Inc. $($HDS$)$:

Five years of realized returns for HDS are given in the following table. Remember:

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

The returns on its equity are calculated as arithmetic returns.

The historical returns for HDS for $2014$ to $2018$ are:

Given the preceding data, the average realized return on HDS$\text{'}$s stock is

The preceding data series represents

of HDS$\text{'}$s historical returns. Based on this conclusion, the standard deviation of HDS$\text{'}$s

historical returns is

If investors expect the average realized return from $2014$ to $2018$ on HDS$\text{'}$s stock to continue into the future, its coefficient of variation $($CV$)$ will beThe preceding data series represents of HDS$$s historical returns. Based on this conclusion, the standard deviation of HDS$$s historical returns is $\_\_\_\_\_\_\_\_\_.$

If investors expect the average realized return from $2014$ to $2018$ on HDS$$s stock to continue into the future, its coefficient of variation $($CV$)$ will be $\_\_\_\_\_\_\_\_\_\_\_\_.$