The following are the annual total returns for the Northern Stock Exchange (N300) and Xbit Mining Corp, along with the one-year T-bill rates for Country of North.

Required:

1. Compute the excess returns for the N300 and for Xbit. (2 marks)

2. Graph the excess returns for Xbit against the N300. Use Excel to compute the Alpha, Beta, and R squared of Xbit's excess returns vs N300's excess returns. (3 marks)

3. Is Xbit an aggressive or defensive stock? (1 mark).

4. Calculate the Sharpe ratio, Jensen's alpha, and Treynor ratio for Xbit. (3 marks)

Xbit Mining and Northern 300 Exchange
Year	N300 return	Xbit return	1-year T-bill
2007	12.75%	15.76%	2.17%
2008	-25.55%	-30.55%	1.32%
2009	-5.78%	-8.76%	1.26%
2010	12.76%	15.86%	2.75%
2011	10.45%	15.65%	4.38%
2012	5.55%	6.45%	5.00%
2013	20.55%	18.95%	3.34%
2014	30.15%	42.76%	0.37%
2015	-5.65%	-20.75%	0.47%
2016	0.00%	-10.50%	0.29%
2017	12.55%	18.45%	0.12%
2018	9.55%	13.45%	0.16%
2019	10.45%	15.75%	0.13%