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 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 5.6%? (Round your answer to 2 decimal places.)

ABLE 5.3 Risk and return of investments in major asset classes, 1927-2018