Could you answer these 2 questions for me please :)

1. Getting Familiar with Excel This problem will help you to work with data in Excel, to learn how to annualize returns and volatilities, and it illustrates the effect of outliers on our estimates of expected returns and risks. You consider an investment in Suncor Energy Inc. (ticker: SU). In order to estimate your expected return and risk, you want to use historical data for the last three years. You can download the historical daily prices for the common stock of Suncor Inc. between September 1, 2016 and August 15, 2019 yourself from finance.yahoo.com, google.com/finance, and/or Bloomberg. Or you can use file Suncor_TSX.xlsx, which contains the daily market data for Suncor Inc. Note that shares of Suncor Inc. are traded at two stock exchanges: in USD at New York Stock Exchange (NYSE) and in CAD at Toronto Stock Exchange (TSX). In this example, shares traded at TSX are used. (a) How many observations does the sample contain? Why is the number of observations different from 365 3 16 = 1079? (b) Using historical Adjusted Close prices, compute daily returns for the Suncor stock. Using the returns you computed, compute the average daily return for the entire sample. What is the maximum daily Suncor stock return? What is the minimum return? (c) What is the average Suncor daily return without the maximum daily return? Without the minimum? Based on these results, what can you say about the sensitivity of the expected return estimates to outliers? (d) What is the volatility of Suncor daily returns? Use STDEV.S() excel function (or equiv- alent) to compute the volatility. What is annualized volatility of returns? (e) What is the volatility of Suncor daily returns without the maximum daily return? With- out the minimum daily return? What can you say about the sensitivity of the volatility estimates to outliers?

2. Student Loan This problem will help you to review the material you studied in Comm 298. Throughout the course, it will be assumed that you are comfortable with similar calculations. Your friend Larissa wants to pursue an undergraduate degree in Finance and needs to take a student loan to pay for her tuition, accommodation, and study related expenses. She considers a Student Line of Credit option offered by RBC. The degree will take four years and Larissa plans to borrow from the bank $15000.00 in the beginning of each year. The current prime rate is 3.950%. Larissa will pay the prime rate minus 0.25%. During the four years of her studies, Larissa will only make interest payments without paying back any principal. (a) Assume that the quoted interest rate in a monthly APR and that the bank requires monthly payments. How much per month Larissa will have to pay in each of her study years? (b) Larissa hopes to find a job right after graduation and start repaying her student loan immediately. She plans to repay the debt within 5 years. Assume that the interest rate stays the same and that she will make monthly payments. How much will she have to pay per month? (c) Lets consider loan amortization over time explained by bankers (sometimes they over- complicate things).

Example: You took a 6% (monthly APR) 30-year $100,000 loan on September 1, 2019 and your first payment of $599.55 is due October 1, 2019. That payment includes the interest due for September. Banks calculate the interest payment by multiplying 1/12 of the interest rate (remember, it is monthly APR) times the loan balance in the previous month. The interest for September due October 1, therefore, is 1/12 6% $100,000 = $500. The remaining $99.55 is paid towards loan principal, and reduces the balance to $99,900.45. The principal payment is always residual, i.e., the difference between the total payment and the interest due. Now, what part of Larissas first payment will be paid towards the interest due? What part of her payment will be paid towards the principal of her loan? What is her out- standing principal after the first payment? Demonstrate that you can get the same answer simply using an annuity formula. (d) Larissa considers a possibility that she will have to defer her loan repayment for 12 months after graduation if she does not find a job immediately. In that case, she will not pay any interest but the interest accumulated over 12 months will be added to the principal of her loan. How much will she owe the bank after one year of deferment? (e) Larissa also considers a possibility that she will be able to pay only $800.00 dollars per month. In this case, how many months will she need to repay the debt?