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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

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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 5.3%? (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 3.42 Arithmetic average Risk premium Standard deviation max 208 ad 11.91 8.48 119.99 50.38 4373 380

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