ch 5 question 3

Required: Using Table 5.3 as your guide, what is your estimate of the expected annual HPR on the market index stock portfolio if the current riskfree interest rate is 5.6% ? (Round your answer to 2 decimal places.) \begin{tabular}{|l|r|r|r|} \hline & T-bills & T-bonds & Stocks \\ \hline Average & 3.38 & 5.83 & 11.72 \\ \hline Risk premium & na & 2.45 & 8.34 \\ \hline Standard deviation & 3.12 & 11.59 & 20.05 \\ \hline max & 14.71 & 41.68 & 57.35 \\ \hline min & 0.02 & 25.96 & 44.04 \\ \hline \end{tabular}