H$.$ As a new analyst, you have obtained the prices for the stocks of both Lulu and Lemon. Both stocks did not paid any dividends during the entire period.

$($I$)$ Your manager has asked you $($i$)$ to compute the rate of return and standard deviation of the two stocks and suggest that because these companies produce similar products, you should continue your analysis by $($ii$)$ computing their covariance and correlation. Show all calculations.

$($II$)$ Compute the return and standard deviation of a portfolio with $60\%$ investment in Lulu and $40\%$ in Lemon.

$($III$)$ Would you recommend putting these two stocks together in a portfolio? Explain why or why not.