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W Set 5 (Ch 5) i 4 Savad Using Table 5.3 as your guide, what is your estimate of the expected annual HPR on

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W Set 5 (Ch 5) i 4 Savad 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 3% ? (Round your answer to 2 decimal places.) 10 point Expected anewal HPR Prim References TABLE 5.3 Risk and return of investments in major asset classes, 1927-2016 T-bills T-bonds Stocks Arithmetic average 3.42 551 11.91 Risk premium N/A 2.08 8.48 Standard deviation i 3.14 8.14 19.99 max 14.71 38.07 56.38 min -0.02 -8.47 -4373

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