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The following information is availableregarding theaction of BCE Inc. TSX Composite Index:

Years	BCE's share price at theend of the year	Value of the year-end S-P/TSX Index
1	$48	15 000
2	48	15 200
3	52	15 600
4	49	15 400
5	53	16 000
6	55	16 200

At the beginning of Year 1, BCE Inc.'s stock was trading at $46 on the Toronto Stock Exchange and the value of the TSX Composite Index was 14,700. BCE Inc. pays its common shareholders an annual dividend of $3 per share (assume that the dividend is distributed in full at the end of the year).

(a) Calculate thehistorical returns of BCE INC.'s share and those of the TSX Composite Index. (2 s points)

b) Calculate the avariance between BCE Inc.'s returns and those of the S.P./TSXstock index. (2 s points)

c) Determine the equation of the right caraceristic action of BCE Inc. (1.50 points)

d) Determine the total risk, systematic risk and non-systemic riskof BCE Inc's action. (1.50 points)

(e)Ronald Dump, an American investor who thinks he is particularly gifted, bought 10,000 shares of BCE Inc. on the New York Stock Exchange at a unit price of $36 USD at the beginning of the year 1. At the time of the purchase of the securities, the exchange rate was $1 USD - $1.33 CAD. At the end of Year 6 (i.e.today), the exchange rate is $1 USD - CAD$1.28. Over thepast 6 years, has Ronald Dump achieved a rate of return that is higher, equal to or lower than that of a Canadian investor who acquired his shares from BCE Inc. on the Toronto Stock Exchange and held them over the relevant investment horizon. Explain your answer. You can ignore the impact of dividends paid by BCE Inc. to answer this question.

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