1) briefly describe why the S&P/TSX composite is an appropriate proxy for the market portfolio?

2)Calculate the average return and variance for each stock based on the 10 year ANNUAL data provided (see 'Data!' worksheet).

3) Briefly describe any deficiencies with using this as a proxy for the market portfolio?

10-Year ANNUAL Data Canadian Magna S&P/TSX Imperial Bank International TransCanada Composite Telus of Commerce Inc. Enbridge Corporation Index Trade Date T.TO CM.TO MG.TO ENB. TO TRP.TO AGSPTSE 1/2/2008 $ 14.74 37.95 12.75 $ 11.01 24.59 13,926.80 12/31/2008 S 11.49 29.15 S 6.59 S 11.53 20.84 8,987.70 12/31/2009 S 11.16 S 41.27 S 9.82 S 15.26 S 23.81 11,746.10 12/31/2010 S 15.61 S 49.67 S 19.77 S 19.18 S 26.08 13,443.20 12/30/2011 S 20.64 S 49.02 S 13.61 S 27.25 S 31.83 11,955.10 12/31/2012 S 24.26 S 56.37 S 20.90 S 31.67 S 34.98 12,433.50 12/31/2013 S 28.32 67.00 S 37.99 S 35.13 S 37.56 13,621.60 12/31/2014 S 33.70 77.57 S 56.38 S 46.48 45.80 14,632.40 12/31/2015 S 32.03 75.21 S 51.14 S 37.27 S 37.81 13,010.00 12/30/2016 S 37.41 94.69 S 54.39 S 47.72 in 52.70 15,287.60 12/29/2017 S 43.52 110.81 S 67.68 S 43.50 S 55.45 16,209.10 12/31/2018 43.23 96.45 S 60.27 S 39.89 S 46.58 14,322.90 12/31/2019 $ 50.28 108.06 S 71.20 S 51.63 S 69.16 17,063.40