Project description: This is a project for applying market timing to the TSX composite monthly TOTAL return and the monthly T-bills return that you have used for your assignments.

The data you use, covers the period of 31-January 2006 to 31- December 2020. You may use the examples I made in class as your guide. Please note that this is an individual project and every student should fork on this project individually. Using a spreadsheet that is created by another individual and sent to you would be in violation of the Dalhousie Students code of conduct and will be considered as cheating. Suppose you had $1,000 to invest at the beginning of year 2006. You could have invested with one of the following strategies: 1. Investing the $1,000 on a portfolio, mimicking TSX Composite. This means that you keep the same portfolio until the end of December 2020. 2. Investing the $1,000 on one month T-Bills for the entire period. This means that you invest the money at the beginning of January 2006 for the month of January. Then reinvest it for the month of February and so forth. You keep rolling over the investment on 1-minth T-Bills until the end of December 2020. 3. Assuming you have a perfect market-timing and are able to forecast whether in each month TSX or T-Bills provide higher return, you invest the $1,000 on January 1, 2006 on whichever option that you believe will have a higher return in January and keep the investment on that option until the month that you believe the other option will do better. you keep switching your investment back and forth between the two (always invest on the higher return option). a. How much money will you end up having at the end of December 2020? b. What are the average return and standard deviation of return in each each strategy? c. In less than 40 words explain what you learn from this exercise?