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QUESTION 2: The possible returns of Jim Tannery's stock for the next 4 years are -10.9%, 16.3%, 21.7% and 27.1% and for Leys' stock are:

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QUESTION 2: The possible returns of Jim Tannery's stock for the next 4 years are -10.9%, 16.3%, 21.7% and 27.1% and for Leys' stock are: 35.4%, 24.5%, 1.9% and -15.5%. (a) Compute the time-weighted return for each stock. (b) Compute the standard deviation for each stock. (c) Compute the covariance of each stock (d) Compute the correlation coefficient for each stock (e) Briefly explain the difference between the time-weighted and dollar-weighted returns

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