Question: Using the Table 5.4 as your guide, what is your estimate of the expected annual HPR on the S&P 500 stock portfolio if the current

Using the Table 5.4 as your guide, what is your estimate

Using the Table 5.4 as your guide, what is your estimate of the expected annual HPR on the S&P 500 stock portfolio if the current risk-free interest rate is 4.9%? (Round your answer to 2 decimal places.)

Expected annual HPR=

TABLE 5.4 Excess return statistics for the S&P 500 Excess Return (%) Average Sharpe Ratio Std Dev 5% VaR 1926-2010 7.97 20.70 39 -36.86 -53.43 1926-1955 11.67 25.40 46 -30.51 1956-1985 5.01 17.58 28 -42.28 1986-2010 7.19 40 17.83

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