Question: 5. (8 marks) The following table lists the annual returns on Canadian small and emerging companies/stocks during the 16-year period from 2002 to 2017. If

 5. (8 marks) The following table lists the annual returns on

5. (8 marks) The following table lists the annual returns on Canadian small and emerging companies/stocks during the 16-year period from 2002 to 2017. If you had invested in an index fund consisting of these stocks (such as S&P/TSX Venture Composite index), what is the approximate probability that your return would have been higher than 91.18% in a given year? What range of returns would you have expected to see 95% of the time? What about 99% of the time? Assuming that the returns on Canadian small stocks are approximately normally distributed. Year S&P/TSX Venture Composite 2002 3.66% 2003 63.24% 2004 4.40% 2005 22.62% 2006 33.59% 2007 -4.94% 2008 -71.93% 2009 90.80% 2010 50.45% 2011 -35.07% 2012 -16.88% 2013 -21.80% 2014 -25.00% 2015 -24.42% 2016 45.03% 2017 11.59%

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