Required: 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.) Expected annual HPR %
Required: 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.) Expected annual HPR %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:TABLE 5.3 Risk and return of investments in major asset classes,
1927-2018
Average
Risk premium
Standard deviation
max
min
T-bills
3.38
na
3.12
14.71
-0.02
T-bonds
5.83
2.45
11.59
41.68
-25.96
Stocks
11.72
8.34
20.05
57.35
-44.04

Transcribed Image Text:Required:
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.)
Expected annual HPR
%
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