Required:

Using:Table $5\mathrm{.}3$ as your guide, what is your estimate of the expected annual HPR on the market index stock portfolio if the current riskfree interest rate is $4\mathrm{.}3\%?($Round your answer to $2$ decimal places.

TABLE $5\mathrm{.}3$ Risk and return of investments in major asset classes, $1927-2018$

$\backslash$table$[[,$T$-$bills,T$-$bonds,Stocks$],[$Average$,3\mathrm{.}38,5\mathrm{.}83,11\mathrm{.}72],[$Risk premium,na$,2\mathrm{.}45,8\mathrm{.}34],[$Standard deviation,$3\mathrm{.}12,11\mathrm{.}59,20\mathrm{.}05],[max,14\mathrm{.}71,41\mathrm{.}68,57\mathrm{.}35],[min,-0\mathrm{.}02,-25\mathrm{.}96,-44\mathrm{.}04]])$

Expected annual HPR

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