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Q 1 . As a new analyst you have calculated the following annual rates of return for the stocks of both Lauren Corporation and Raleigh
Q As a new analyst you have calculated the following annual rates of return for the stocks of both
Lauren Corporation and Raleigh Industries
i Compute average return, standard deviations, coefficient of variation covariances and
correlations of the two stocks
ii Would a combination of Lauren and Kaleigh be good for diversification?
iii Graph risk return relationship
iv Identify minimum variance portfolio and optimal tangency portfolio if the risk free rate
is
v Graph risk return relationship of
a Risk free with minimum variance portfolio
b Risk free with optimal portfolio
c Risk free with Lauren
d Risk free with Kayleigh
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