Q$1.$ 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 co$-$variances 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 $3\%$

$($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