Question: Required: Using Table 53 as your guide, what is your estimate of the expected annual HPR on the market index stock portfolio if the current

Required: Using Table 53 as your guide, what is your estimate of the expected annual HPR on the market index stock portfolio if the current risk- free interest rate is 4.9% (Round your answer to 2 decimal places.) Expected annual HPR % TABLE 5.3 Risk and return of investments in major asset classes, 19272018 Average Risk premium Standard deviation max min T bills 3.38 na 3.12 14.71 0.02 T bonds 5.83 2.45 11.39 41.68 -25.96 Stocks 11.72 8.34 20.05 37.35 -44.04
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