column to CPI. Submit a printout of the graph of year-over-year inflation for these 53 years. What happened to year- over-year inflation in Canada in December 2023? Why? (3 marks) Also calculate the average and standard deviation of the annual inflation over this period (2 marks). Hints: https://www150.statcan.gc.ca/n1/daily-quotidien/240116/dq240116a-eng.htm https://www.cbc.ca/news/business/inflation-dec-2023-1.7084981 https://www.reuters.com/markets/canadas-inflation-rises-34-dec-meeting-expectations-2024-01-16/ 4b. Stock Returns (1971 - 2023): In a different worksheet of the same workbook, calculate the monthly returns for S&P/TSX Composite using the closing values. (The change should be calculated as the value in month t minus the value in month (t-1) and then divided by the value in month (t-1) to find the monthly returns). Calculate the mean and standard deviation for these monthly returns. Annualize the monthly average and standard deviation of returns. (5 marks) Submit a printout and a graph of monthly annual inflation (part a) and nominal TSE returns for the last 50 years (1973 - 2023) and report their correlation. How does high inflation affect nominal (not inflation-adjusted) TSE returns in the real world? (4 marks)column to CPI. Submit a printout of the graph of year-over-year inflation for these 53 years. What happened to year- over-year inflation in Canada in December 2023? Why? (3 marks) Also calculate the average and standard deviation of the annual inflation over this period (2 marks). Hints: https://www150.statcan.gc.ca/n1/daily-quotidien/240116/dq240116a-eng.htm https://www.cbc.ca/news/business/inflation-dec-2023-1.7084981 https://www.reuters.com/markets/canadas-inflation-rises-34-dec-meeting-expectations-2024-01-16/ 4b. Stock Returns (1971 - 2023): In a different worksheet of the same workbook, calculate the monthly returns for S&P/TSX Composite using the closing values. (The change should be calculated as the value in month t minus the value in month (t-1) and then divided by the value in month (t-1) to find the monthly returns). Calculate the mean and standard deviation for these monthly returns. Annualize the monthly average and standard deviation of returns. (5 marks) Submit a printout and a graph of monthly annual inflation (part a) and nominal TSE returns for the last 50 years (1973 - 2023) and report their correlation. How does high inflation affect nominal (not inflation-adjusted) TSE returns in the real world? (4 marks)Question 4 Inflation, Bond Yields and Stock Returns (25 Marks) Go to the Statistics Canada website and download the following two tables: Table 18-10-0004-01 Consumer Price Index, monthly, not seasonally adjusted https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810000401 Geography: Canada Set Reference Period: January 1971 to December 2023 Use the CPI values for "All Items". Table 10-10-0125-01 Toronto Stock Exchange (TSE) statistics https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1010012501 Set Reference Period: January 1971 to September 2023 Use the "close" values for the composite index. This table does not include three months data of October-December 2023. For that reason, find the TSX monthly close (the "Close (S)" value on the last trading day of the month) for October 2023, November 2023 and December 2023 from TMX Money: https://money.tmx.com/en/quote/%5ETSX/price-history Note that the CPI value and TSE close are at the end of the month and the TSE close is a nominal value.Note that the CPI value and TSE close are at the end of the month and the TSE close is a nominal value. 4a. Inflation in Canada (1971- 2023): In a worksheet get the months in a column using "transpose" in special paste. In the next column get the CPI values. Graph the CPI values of all items over the reference period (January 1971 to December 2023) in Excel. From this graph, determine the TWO periods where the graph turns particularly steep and remains steep. What is meant by this steeper parts of the graph? (3 marks) To calculate annual inflation for month t, the change in CPI should be calculated as the value in month t minus the value in month (t-12) and then divided by the value in month (t-12). For example, if month t is January 1972, then month (t-12) is January 1971. Using this method, calculate the year-over-year inflation for all these years in the next