Using Table 5.3 as your guide, what is your estimate of the expected annual HPR on the S&P 500 stock portfolio if the current risk-free interest rate is 4.8%? (Round your answer to 2 decimal places.) Expected annual HPR HPR TABLE 5.3 Statistics for asset-class Index portfolios, 19262013 (annual rates In U.S. dollars, %) World Markets U.S. Markets Large Stocks Government Bonds Small Stocks Large Stocks U.S. Long-Term Treasuries 8.24 11.82 -54.27 (1937) 159.05 (1933) 9.88 -45.56 (1931) 54.56 (1933) 5.07 -13.82 (2009) 32.68 (1985) 37.29 - 48.33 20.52 -31.96 8.01 - 11.51 -23.51 - 10.23 -8.46 -1.28 A. Total Returns Geometric average (%) 5.37 Lowest return - 39.94 (1931) -13.50 (1946) Highest return 70.81 (1933) 34.12 (1985) B. Risk (Measured Using Excess Returns) Standard deviation 18.89 8.44 Value at risk (VaR) 5% -25.88 10.67 C. Deviation from Normality VaR assuming normality -22.54 -10.43 Actual VaR minus normal -3.34 -0.24 Skew -0.09 0.68 Kurtosis 1.08 D. Returns in Excess of one-Month T-Bill Rates Average excess return 6.32 Standard error 2.01 E. Sharpe Ratios for 1926-2013 and Three Subperiods Entire period 0.33 0.26 1926-1955 0.22 1956-1985 0.19 0.05 1986-2013 0.35 0.52 F. Correlations of Excess Returns With inflation -0.13 -0.27 With T-bill rates -0.25 -0.16 - 36.96 -11.37 0.83 1.97 0.39 -0.31 -0.05 1.39 0.53 2.16 13.94 1.83 8.34 2.19 0.90 3.97 0.85 0.37 0.41 0.23 0.43 0.40 0.38 0.59 -0.11 0.41 0.37 0.48 -0.02 -0.22 -0.06 -0.17 -0.17 -0.12