You are considering investing CAD$100,000 of cash in the common stock of five companies.

Before investing this money you want to calculate a variety metrics to get a sense of the potential risk and return of the resulting portfolio.

Therefore, for this assignment you are required to:

1)Calculate the average return and variance for each stock based on the 10 year ANNUAL data provided (see 'Data!' worksheet).

2)Calculate the Beta of each stock using 1 years' (2019) worth of daily data.

3)

a)Briefly describe why the market portfolio defined in 2) is an appropriate proxy for the market portfolio.

b)Briefly describe any deficiencies with this market proxy.

4)Calculate the following PORTFOLIO metrics using the 10 year ANNUAL data provided.

a)average return,

b)Beta, and

c)Variance.

Assume the portfolio weights are T.TO (20%); CM.TO (25%); MG.TO (10%); ENB.TO (25%); and TRP.TO (20%)