Question
Name Enbridge Inc. S&P/TSX Composite Index 1974 -47.18% -29.78% 1975 -5.83% 5.33% 1976 16.49% 2.81% 1977 6.19% -1.65% 1978 10.83% 23.95% 1979 0.75% 29.72% 1980
| Name | Enbridge Inc. | S&P/TSX Composite Index |
| 1974 | -47.18% | -29.78% |
| 1975 | -5.83% | 5.33% |
| 1976 | 16.49% | 2.81% |
| 1977 | 6.19% | -1.65% |
| 1978 | 10.83% | 23.95% |
| 1979 | 0.75% | 29.72% |
| 1980 | -4.48% | 41.29% |
| 1981 | -14.06% | -13.92% |
| 1982 | 67.27% | -2.53% |
| 1983 | 33.70% | 29.29% |
| 1984 | 3.25% | 0.16% |
| 1985 | 40.94% | 13.79% |
| 1986 | -12.57% | 11.70% |
| 1987 | 5.75% | -3.49% |
| 1988 | 0.00% | 10.64% |
| 1989 | 13.90% | 20.10% |
| 1990 | 2.12% | -22.26% |
| 1991 | 1.04% | 16.37% |
| 1992 | -20.57% | -7.04% |
| 1993 | 20.39% | 27.35% |
| 1994 | -2.96% | -0.17% |
| 1995 | 13.30% | 8.73% |
| 1996 | 25.18% | 25.84% |
| 1997 | 36.72% | 18.98% |
| 1998 | 19.86% | -6.33% |
| 1999 | -10.01% | 13.55% |
| 2000 | 29.14% | 31.08% |
| 2001 | 16.00% | -25.25% |
| 2002 | 0.00% | -10.51% |
| 2003 | 17.24% | 23.01% |
| 2004 | -2.56% | 12.28% |
| 2005 | 38.31% | 20.29% |
| 2006 | 10.35% | 16.60% |
| 2007 | -0.30% | 14.14% |
| 2008 | 2.95% | -32.08% |
| 2009 | 5.63% | 17.24% |
| 2010 | 31.99% | 16.02% |
| 2011 | 25.27% | -4.32% |
| 2012 | 10.86% | -2.38% |
| 2013 | 16.97% | 9.74% |
| 2014 | 13.53% | 9.81% |
| 2015 | -0.58% | -7.74% |
| 2016 | 10.34% | 8.14% |
| 2017 | -17.97% | 9.88% |
| 2018 | -7.50% | -4.64% |
| 2019 | 14.38% | 9.90% |
This question requires the use of the Excel file Assignment 3 Data found on ACORN. In the file, you will find the annual returns for Enbridge Inc. (ENB) and the S&P/TSX Composite Index (which we will use for the market portfolio). All parts of this question are to be done in Excel with your results printed and submitted with the other questions in this assignment.
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Use the data for each of ENB and the S&P/TSX Composite Index to find the historical 95% confidence interval of each. [10 points]
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Plot the returns of the market against the returns of ENB. Add a trendline to the graph and determine the beta of the stock from your trendline. [5 points]
-
Determine the variance and average annual return of the market portfolio. [3 points]
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Determine the correlation coefficient between the market portfolio and ENB. [3 points]
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What is the calculated beta for ENB using the information derived from parts a, c, and d? How does this compare with your answer to part b? [2 points]
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The current Government of Canada Benchmark 10 Year Bond Yield (which will be our risk-free rate) is 1.61%. What is the required return on ENB stock according to the CAPM? [2 points]
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Health Care Finance And The Mechanics Of Insurance And Reimbursement
Authors: Michael K. Harrington
2nd Edition
1284169030, 978-1284169034
