Calculate the risk of asset to annual historic returns


Assignment:

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%

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

2) Run the same calculations except this time take into account a 2% inflation factor that will affect the real return on each asset class.

Solution Preview :

Prepared by a verified Expert
Risk Management: Calculate the risk of asset to annual historic returns
Reference No:- TGS02016006

Now Priced at $25 (50% Discount)

Recommended (94%)

Rated (4.6/5)