Calculate the risk of asset class

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Part a: Based on the following information, calculate the risk of each asset class in relation to its annual historic return.

Asset Class Geometric Mean (%) Standard Deviation (%)

Large Co. Stocks 12.83% 9.75%

Small Co. Stocks 14.87% 18.55%

Government Bonds 4.10% 2.58%

Corporate Bonds 4.81% 2.36%

Part d: Run the same calculations for "part a" except this time take into account a 2% inflation factor that will affect the real return on each asset class.

Reference no: EM133111142

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