Night Life Fashions (NLF) has been trading on the Toronto Stock Exchange (TSX) for more than 20 years. NLFs year-end prices and dividends and the TSX index level over the past 6 years are listed in Table 1:

Table 1: NLFs share prices and dividends and the TSX index over the past several years

Row 1	December 31	2014	2015	2016	2017	2018	2019
Row 2	Share Price	52.67	63.04	64.86	79.75	68.71	85.15
Row 3	Dividend	0.83	0.95	0.95	1.00	1.00	1.05
Row 4	TSX Index	14384.29	12445.45	15496.05	16349.44	14426.62	17066.12
Row 5	NLF Returns
Row 6	TSX Returns

1. a) What are NLFs annual returns for past 5 years? (4 marks) Hint: You can use the formula RMRG = (P1 P0 + D1)/P0. Note that you cannot find the return for 2014 because you do not have P0 for that year.

2. b) What are the arithmetic mean return and the geometric mean return for NLF for the last 5-year period? (3 marks)

3. c) Using the arithmetic mean, what is the standard deviation for NLFs returns? (3 marks)

4. d) What are the TSX market returns for past 5 years? (4 marks)

5. e) Assuming the TSX is the market against which you measure the risk of NLF, what is the beta of NLF and the correlation coefficient between NLF and the market? (4 marks) Hint: You need to use excel or your calculator for this exercise. In Excel: (1) arrange the NLF returns and the TSX returns in two columns. (2) in excel go to data, data analysis, from the table highlight regression, and OK. A table with instructions appears. (3) Follow the directions. Make sure to enter the NLF returns data as the Y Range data and the TSX returns data as the X Range. The beta will be the coefficient of Variable 1.