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4. Compare your annualized return with that of the S&P/TSX Composite index over the past year....

4. Compare your annualized return with that of the S&P/TSX Composite index over the past year. In one paragraph, explain why each return is greater or less than the index.

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Answer #1

My annualized return is approximately 10% in last year and which has not been in line with the performance of Standard and Poor because the index has given a return in zones of almost 20%, because of a bull run in the major companies which are present in the index.

My return is lesser than that of index, because I have been exposed to a lot of defensive stock as I expected that there would be a downside in the economy and I have not been exposed to overpriced stocks and I have not been able to make as many as the index so I am outperforming the index due to being highly conservative in nature and having an exposure towards highly defensive sectors which were mostly consisted of retail and pharmaceuticals.

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