3. Measuring stand-alone risk using realized (historical) data Returns earned over a given time period are called realiz
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3. Measuring stand-alone risk using realized (historical) data Returns earned over a given time period are called realiz
0 2 Consider the case of Happy Dog Soap Inc. (HDS) Five years of realized returns for HDS are given in the following table Remember S 1. While HDS was startet 40 years ago, its common stock has been putildy traded for the past 25 yeam 2. The returns on its equity are calculated as the retu 3. The historical returns for HDS for 2014 to 2018: W 2014 2015 2016 2017 2018 Stock return 21.29% 14.45% 25.50% 35.70% 11.05% Given the preceding data, the average realized return on HDS'S The preceding data series presen matorical reture for exact the average realized return from 2014 to 2018 on = X H mand # 3 E yo D • ए 4 C R F S57 % < P of HOS'S T G A MacBook Pro < 6 $6.93% 43.3% 21:39% 33.999 B Y & 7 H Bend on the conclusion continue to the fans B U N 8 Grade It N 3 J
ools ctory * 2 Ch 08 Practice Risk and Rates of Return Returns eamed over a given time perod are called realized retums. Pstorical data on realand retumsa Consider the case of Happy Dog Soap Inc. (HDS) Five years of realized return for HDS are given in the following table Remember 1. While HD was started 40 years ago, tx common stock has been publicly traded for the best 25 2 The returns on its equity are calculated as anthmetic retums 3. The historical returns for HDS for 2014 to 2018 W 2014 Stock eur 31.25% Given the preceding data, the averag S The preceding data sare represent cal # X command # investorsed the everage realed return from 2014 to 2018 POS stock to continue the f 3 wo E D Du 2015 2016 2017 2018 14.45% 25.50% 25.70% 100% S 4 C the ver the population 300 R a sample FL % 5 V P HO'S T fissatoncal retums. Based on this conce MacBook Pro 6 G P Y B & 7 H T 2 Gra 8 N J
Ch 08: Practice - Risk and Rates of Return Returns earned over a given time period are called realized returns. Historical data on realized returns is often 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: Stock return 2014 The preceding data historical returns is 21 25% 8.68% 7.47% Given the preceding 13.10% average realized return on HDS's stock is 2015 2016 2018 2017 14.45% 25.50% 35.70% 11.05% 9.70% Jesents of HDS's historical returns. Based on this conclusic If Investors expect the average realized return from 2014 to 2018 on HDS's stock to continue into the future, Grade
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 21.25% 14.45% 25.50% 35.70% 11.05% stimate the risk of a stock. 0.83 e preceding data, the average realized return on HDS's stock is 0.52 0.38 0.45 eding data series represents returns is of HDS's historical returns. Based on this conclusion, the standard brs expect the average realized return from 2014 to 2018 on HDS's stock to continue into the future, its coefficient of