TABLE 5.3 Risk and return of investments in major asset classes, 1927-2018 Average Risk premium Standard...

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TABLE 5.3 Risk and return of investments in major asset classes, 1927-2018 Average Risk premium Standard deviation max min T-bills 3.38 na 3.12 14.71,0 -0.02 T-bonds 5.83 12.45 11.59 41.68 -25.96 Stocks 11.72 8.34 20.05 $7.35 -44.04 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 risk free interest rate is 5.2% ? ( Round your answer to 2 decimal places.) Expected annual HPR Check m TABLE 5.3 Risk and return of investments in major asset classes, 1927-2018 Average Risk premium Standard deviation max min T-bills 3.38 na 3.12 14.71,0 -0.02 T-bonds 5.83 12.45 11.59 41.68 -25.96 Stocks 11.72 8.34 20.05 $7.35 -44.04 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 risk free interest rate is 5.2% ? ( Round your answer to 2 decimal places.) Expected annual HPR Check m

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Identify the relevant data The table shows the average annual returns for Tbills Tbonds and stocks o... View the full answer