# Question

a. Rogers Communication (RCI.B) (25%), Royal Bank of Canada (RY) (25%), Shaw Communications (SJR.B) (25%), Suncor Energy (SU) (25%)

b. RCI.B (10%), RY (50%), SJR.B (30%), (SU) (10%)

c. RCI.B (20%), RY (40%), SJR.B (30%), (SU) (10%)

d. Which portfolio would a gambler choose? Explain.

e. Which portfolio would a risk-averse investor choose? Explain.

Monthly returns for the following selected stocks on the Toronto Stock Exchange were recorded for the years 2008 to 2012:

Barrick Gold (ABX), Bombardier (BBD.B), Bell Canada Enterprises (BCE), Bank of Montreal (BMO), Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CM), Canadian National Railways (CNR), Canadian Oil Sands (COS), Canadian Tire (CTC.A), Encana (ECA), Enbridge (ENB), Manulife Financial (MFG), Magna International (MG), Potash Corporation of Saskatchewan (POT), Power Corporation of Canada (POW), Research in Motion (RIM), Rogers Communication (RCI.B), Royal Bank of Canada (RY), Shaw Communications (SJR.B), Suncor Energy (SU), Telus (T), Tim Horton’s (THI)

b. RCI.B (10%), RY (50%), SJR.B (30%), (SU) (10%)

c. RCI.B (20%), RY (40%), SJR.B (30%), (SU) (10%)

d. Which portfolio would a gambler choose? Explain.

e. Which portfolio would a risk-averse investor choose? Explain.

Monthly returns for the following selected stocks on the Toronto Stock Exchange were recorded for the years 2008 to 2012:

Barrick Gold (ABX), Bombardier (BBD.B), Bell Canada Enterprises (BCE), Bank of Montreal (BMO), Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CM), Canadian National Railways (CNR), Canadian Oil Sands (COS), Canadian Tire (CTC.A), Encana (ECA), Enbridge (ENB), Manulife Financial (MFG), Magna International (MG), Potash Corporation of Saskatchewan (POT), Power Corporation of Canada (POW), Research in Motion (RIM), Rogers Communication (RCI.B), Royal Bank of Canada (RY), Shaw Communications (SJR.B), Suncor Energy (SU), Telus (T), Tim Horton’s (THI)

## Answer to relevant Questions

a. Canadian Imperial Bank of Commerce (CM) (25%), Enbridge (ENB) (25%), Potash Corporation of Saskatchewan (POT) (25%), Power Corporation of Canada (POW) (25%),b. CM (15%), ENB (55%), POT (15%), POW (15%)c. CM (10%), ENB ...a. Amazon (AMZN) (25%), Apple (AAPL) (25%), Dell (DELL) (25%), Dollar Tree (DLTR) (25%)b. AMZN (10%), AAPL (20%), DELL (30%), DLTR (40%)c. AMZN (40%), AAPL (40%), DELL (10%), DLTR (10%)d. Which portfolio would a gambler ...Refer to Example 3.2. Estimate the following from the histogram of the returns on investment B.a. P(X > 45)b. P(10 < X < 40)c. P(X < 25)d. P(35 < X < 65)The following function is the density function for the random variable X:a. Graph the density function.b. Find the probability that X lies between 2 and 4.c. What is the probability that X is less than3?Refer to Exercise 8.40. If we wanted to be sure that 98% of all bulbs last longer than the advertised figure, what figure should be advertised?Post your question

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