4. Measuring standalone risk using realized dataReturns earned over a given time period are calledrealized returns. Historical data on realized returns isoften used to estimate future results. Analysts acrosscompanies use realized stock returns to estimate therisk of a stock. Five years of realized returns for HappyDog Soap Inc. (Happy Dog) are given in the followingtable: 2016 2017 2018 2019 2020 Stock return8.75% 5.95% 10.50% 14.70% 4.55% Also note that:1. While Happy Dog was started 40 years ago, itscommon stock has been publicly traded for the past 25years. 2. The returns on Happy Dog's equity arecalculated as arithmetic returns. Given this return data,the average realized return on Happy Dog Soap Inc.'sstock is. The preceding data series represents asample of Happy Dog's historical returns. Based on thisconclusion, the standard deviation of Happy Dog'shistorical returns is. If investors expect the averagerealized return on Happy Dog Soap Inc.'s stock from2016 to 2020 to continue into the future, its expectedcoefficient of variation (CV) is expected to equal.

Standard deviation is a statistical tool used to quantify the degree of variability or dispersion of…

the average realized return on Happy Dog Soap Inc.'s stock is. The preceding data series represents a sample of Happy Dog's historical returns. Based on this conclusion, the standard deviation of Happy Dog's historical returns is. If investors expect the average realized return on Happy Dog Soap Inc.'s stock from 2016 to 2020 to continue into the future, its expected coefficient of variation (CV) is expected to equal.

the average realized return on Happy Dog Soap Inc.'s stock is. The preceding data series represents a sample of Happy Dog's historical returns. Based on this conclusion, the standard deviation of Happy Dog's historical returns is. If investors expect the average realized return on Happy Dog Soap Inc.'s stock from 2016 to 2020 to continue into the future, its expected coefficient of variation (CV) is expected to equal.

Fundamentals of Financial Management (MindTap Course List)

14th Edition

ISBN:9781285867977

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter8: Risk And Rates Of Return

Section: Chapter Questions

Problem 22SP

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4. 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: Stock return Also note that: 2016 2017 2018 2019 23.75% 16.15% 28.50% 39.90% 2020 12.35% 1. While Crane Cosmetics was started 40 years ago, its common stock has been publicly traded for the past 25 years. 2. 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.'s stock is 24.13% 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 14.6397% ▼ If investors expect…
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All parts are under one questione adn therefore can be answered per your policy. 3. 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 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 returns for FF for 2014 to 2018 are: 2014 2015 2016 2017 2018 Stock return 8.75% 5.95% 10.50% 14.70% 4.55% A. Given the preceding data, the average realized return on FF’s stock is . B. The preceding data series…
4. 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 Falcon Freight Inc. (Falcon) are given in the following table: 2016 2017 2018 2019 2020 Stock return 10.00% 6.80% 12.00% 16.80% 5.20% Also note that: 1. While Falcon was started 40 years ago, its common stock has been publicly traded for the past 25 years. 2. The returns on Falcon's equity are calculated as arithmetic returns. Given this return data, the average realized return on Falcon Freight Inc.'s stock is 10.16% The preceding data series represents a sample of Falcon's historical returns. Based on this conclusion, the standard deviation of Falcon's historical returns is If investors expect the average realized return on Falcon Freight Inc.'s stock from 2016 to 2020 to…
3. 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 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 returns for FF for 2014 to 2018 are: 2014 2015 2016 2017 2018 Stock return 20.00% 13.60% 24.00% 33.60% 10.40% Given the preceding data, the average realized return on FF’s stock is _______. The preceding data series represents ________ of FF’s historical returns. Based on this conclusion, the standard deviation of FF’s…
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