Question: 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

Using Table 5.3 as your guide, what is your estimate of the expected annual HPR on the market index stock portfolio if the

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 4.2%? (Round your answer to 2 decimal places.) Expected annual HPR % TABLE 5.3 Risk and return of investments in major asset classes, 1927-2016 T-bills T-bonds Stocks Arithmetic average 5.51 11.91 Risk premium N/A 2.08 8.48 Standard deviation 3.14 8.14 19.99 14.71 38.07 56.38 min -0.02 -8.47 -43.73 3.42 max

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