1. Compute what would have been the risk of their portfolio if they had replaced that stock with risk-free government bonds yielding a continuously compounded return of 1.5% per year?
$300,000 worth of Toronto-Dominion Bank (TD.TO)
250,000 worth of Telus Corporation (T.TO)
$250,000 worth of Canadian National Railway Company (CNR.TO)
$200,000 worth of Dollarama Inc. (DOL.TO)
2. Your family owns a velociraptor skeleton that is currently valued at $83.5 thousand. Your grandfather, being an avid fossil collector, bought it 50 years ago for $17.3 thousand. If the skeleton keeps appreciating at the same average annual rate, what would be its value 25 years from now?