The returns on its equity are calculated as arithmetic


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

1) While FF was stared 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 2015 are

                         2012          2013           2014        2015        2016

Stock return    25%             17%            30%           42%        13%

1) given the preceding data, the average realized return on FF's stock is_________ ( 25.4%, 78.74%, 50.80%, 63.5%

1b) The preceding data series represents __________( a sample, the universe, the population) of FF's historical returns. Based on this conclusion, the standard deviation of FF's historical returns is ______ (10.21%, 11.42%, 8.79%, 15.41%)

1c) 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 ________(.45   , .5   ,   .38 , .83)

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Financial Management: The returns on its equity are calculated as arithmetic
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