How would this rank order change if the return for each


On a risk/return basis, rank order the following asset classes from lowest to highest based on the following data. (a) Small stocks: E(r) = 18.15% and standard deviation = 36.94%; (b) Large stocks: E(r) = 11.50% and standard deviation = 20.14%; (c) US Treasury bonds: E(r) = 5.45% and standard deviation = 8.06%; How would this rank order change if the return for each class [i.e., the E(r)] were each reduced by a 3% inflation factor?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: How would this rank order change if the return for each
Reference No:- TGS0635113

Expected delivery within 24 Hours