Use the annual S&P/TSX Composite Index and S&P/TSX
Venture Index returns from 2002 up to the end of 2017 shown in
Table 12.1 of the text.Append and include the following annual
percentage market index returns from 2018 to 2021.
a. Calculate the arithmetic mean return for the S&P/TSX
Composite Index over the last 20 years (2002 through 2021,
inclusive).
b. Calculate the arithmetic mean return for the S&P/TSX
Venture Index over the 20 years (2002 through 2021, inclusive).
c. Calculate the standard deviation of returns for the
S&P/TSX Composite Index over the 20 years (2002 through 2021,
inclusive).
d. Calculate the standard deviation of returns for the
S&P/TSX Venture Index over the 20 years (2002 through 2021,
inclusive).
e. Do your calculations confirm the "Second Lesson" on page 442
of the text: "the greater the potential reward, the greater is the
risk"? Explain
S&P/TSX
S&P/TSX
Composite
Venture
Year
Returns
Returns
2002
-12.40
3.66
2003
26.70
63.24
2004
14.50
4.40
2005
23.29
22.62
2006
17.30
33.59
2007
9.80
-4.94
2008
-33.00
-71.93
2009
34.35
90.80
2010
17.27
50.45
2011
-8.57
-35.07
2012
5.41
-16.88
2013
9.55
-21.80
2014
7.42
-25.00
2015
-8.32
-24.42
2016
21.08
45.03
2017
9.10
11.59
2018
-8.89
-35.01
2019
22.88
4.90
2020
5.60
55.32
2021
25.09
5.05
arithmetic mean
8.91
7.78
standard deviation
16.39
39.84
Use the annual S&P/TSX Composite Index and S&P/TSX Venture Index returns from 2002 up to the end of 2017 shown in Table
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