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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

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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 3%? (Round your answer to 2 decimal places.) Expected annual HPR % TABLE 5.3 Risk and return of investments in major asset classes, 19272018 T-bills T-bonds Stocks Average 3.38 5.83 11.72 Risk premium na 2.45 8.34 Standard deviation 3.12 11.59 20.05 max 14.71 41.68 57.35 min -0.02 -25.96 -44.04

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