Answer accurately asap 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 4.7%? (Round your answer to 2 decimal places.)Expected annual HPR% TABLE 5.3 Risk and return of investments in major asset classes, 1927-2018T-billsT-bondsStocksAverage3.385.8311.72Risk premiumna2.458.34Standard deviation3.1211.5920.05max14.7141.6857.35min-0.02-25.96-44.04

The expected return is an estimate of potential investment profits. It determines how much money you…

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 %

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 %

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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Answer accurately asap

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 4.7%? (Round your answer to 2 decimal places.)
Expected annual HPR
%

TABLE 5.3 Risk and return of investments in major asset classes, 1927-2018
T-bills
T-bonds
Stocks
Average
3.38
5.83
11.72
Risk premium
na
2.45
8.34
Standard deviation
3.12
11.59
20.05
max
14.71
41.68
57.35
min
-0.02
-25.96
-44.04

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