TSX Listed Stocks1) CNR ~ Canadian National Railway2)CTC~ Canadian Tire Corporation Ltd3)CWB~ Canadian Western Bank4)Ritchie Bros. Auctioneers Incorporated (RBA.TO)5) Rogers Communications Inc. (RCI-B.TO)6)Richelieu Hardware Ltd. (RCH.TO)7) SAP.TO - Saputo Inc8) SLF - Sunlife Financial 9) SU.TO ~ Suncor Energy Inc10) TELUS CORP11) TC ENERGY12) TORONTO-DOMINIAN BANK13) MDF ~ mdf commerce inc 14) MFC ~ Manulife Financial 15) ZENA ~ Zenabis Global Inc Jr

a) Choose 3 of the 15 selected stocks. For these 3 stocks illustrate graphically and algebraically (i.e. show your calculations with formulas) the benefits of naive diversification (hint: rank the three chosen stocks based on the level of their variance. Then form three portfolios, starting with the highest-variance stock, then adding the second highest-variance stock, and finally adding the lowest-variance stock.)