Henry Chang has asked for your assistance in establishing a portfolio containing two stocks. Henry has $1,000, which can be allocated in any proportion to two alternative stocks. The returns per dollar from these investments will be designated as random variables X and Y. Both of these random variables are independent and have the same mean and variance. Henry wishes to know the risk for various allocation options. You point out that risk is directly related to variance and, thus, that his question would be answered if he knew the variance of various allocation options.