HPR is the Holding Period Return or just simply the RETURN
	Use the following probability distributions for stocks X and Y to answer the questions that follow.
	State of nature	Probability	HPR(X)	HPR(Y)
	Boom	0.20	0.3200	-0.0150
	Normal	0.60	0.1200	0.0850
	Recession	0.20	-0.0900	0.1000
Calculate
a.	Calculate the variance of the returns for Stocks X and Y.
b.	Calculate the covariance of the returns for X and Y.
c	Calculate the correlation of the returns for X and Y.
d	Interpret the correlation coefficient from part (c) (one or two sentences).
e	Form a portfolio of 80% in X and 20% in Y. Calclulate the portfolio variance using two different approaches.
	Note: using covariance and/or correlation is the same approach.