Consider the following scenarios for stocks X and Y and compute the following. Show your manual calculations:

	Bear	Normal	Bull
Probability	0.2	0.5	0.3
Stock X	-20%	18%	50%
Stock Y	-15%	20%	10%

If an investor allocates 40% of the investment budget to Stock X and 60% to Stock Y, calculate the followings:

(i) Expected rates of returns for the portfolio

(ii) Variance of returns and standard deviations for the portfolio

(iii) Covariance and Correlation of the portfolio