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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

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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 4.7% ? (Round your answer to 2 decimal places.) Expected annual HPR 11.48 % Arithmetic average Risk premium Standard deviation max min T-bills 3.42 N/A 3.14 14.71 -0.02 T-bonds 5.51 2.08 8.14 38.07 -8.47 Stocks 11.91 8.48 19.99 56.38 -43.73

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