Abstract
This research investigates the investment performance of Canadian listed cannabis stocks. Canada legalized medical marijuana in 2001, following the initiation of medical marijuana authorization by some states in the US starting in 1996, and completely approved cannabis products in 2018. Investing in the 89 Canadian cannabis equities (listed on the Toronto Stock Exchange, Canadian Securities Exchange, Toronto Venture Stock Exchange, and Over-the-Counter Market) as an industry portfolio, based on weekly returns for the 1996 to 2020 period, generated high mean returns, standard deviation, positive skewness, and kurtosis. Robustness tests taking the winsorised returns (deleting the top and bottom 10 percent of returns) produced qualitatively similar results. Further, both the portfolio alpha and beta were extremely high. More so, the Canadian cannabis portfolio garnered excess returns when compared to the Standard and Poor’s Toronto Stock Exchange Composite Index. Money managers, financial analysts, and investors should contemplate including Canadian listed  cannabis stocks based on their high investment return. 
Highlights
News is new information, and the novelty of brand-new products developed and manufactured by state-of-the-art technology continues to fascinate consumers over time
Descriptive statistics are reported in table 1 for the Canadian listed cannabis stock portfolio of All Stocks from 1996 to 2020, and 20+ Stocks from 2011 to 2020
Clearly the Canadian listed cannabis industry equities portfolio experienced higher return and risk when matched to the stock market portfolio
Summary
The novelty of brand-new products developed and manufactured by state-of-the-art technology continues to fascinate consumers over time. Venture capitalists and lenders are quick to jump on the bandwagon to back these firms by snapping up their stock in anticipation of enjoying supernormal growth and wealth accumulation One such new product creating an additional industry in the mosaic of investment opportunities is cannabis. In recognition of the pharmaceutical benefits of cannabis, Canada legalized medical marijuana effective July 30, 2001. The creation of the legal Canadian cannabis industry parallels what has happened in the United States, where the state of California was the first to legalize medical marijuana in 1996. Our study contributes to the financial literature reinforcing the high returns of sin stocks and emerging market equities. When compared to the emerging markets studies, our investigation is congruent with a greater total risk
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