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:

20092010201120122013
Stock return13.75%9.35%16.50%23.10%7.15%< br /> Also note that:

1.While Crane Cosmetics was started 40 years ago, its common stock has been publicly traded for the past 25 years.
2.The returns onCrane Cosmetics's equity are calculated as arithmetic returns.
Given this return data, the average realized return on Celestial Crane Cosmetics Inc.’s stock is:

a)27.94%

b)43.31%

c)13.97%

d)34.93%

The preceding data series represents of Crane Cosmetics’s historical returns.

a) the universe

b) the population

c) a sample

Based on this conclusion, the standard deviation of Crane Cosmetics’s historical returns is:

a) 6.2782%

b) 5.6154%

c) 8.4756%

d) 4.8342%

If investors expect the average realized return on Celestial Crane Cosmetics Inc.’s stock from 2009 to 2013 to continue into the future, its expected coefficient of variation (CV) is expected to equal:

a) 0.8314

b) 0.5168

c) 0.4494

d) 0.3775