In: Finance
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 2012 to 2016 are: |
2012 |
2013 |
2014 |
2015 |
2016 |
|
---|---|---|---|---|---|
Stock return | 21.25% | 14.45% | 25.50% | 35.70% | 11.05% |
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 historical returns is ._____________
If investors expect the average realized return from 2012 to 2016 on FF’s stock to continue into the future, its coefficient of variation (CV) will be __________________