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.

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Asset Class Geometric Mean (%) Standard Deviation (%) 12.83% Large Co. Stocks 9.75% Small Co. Stocks Govemment Bonds 14.87% 18.55% 4.10% 2.58% 4.81% Corporate Bonds 2.36%