An investment adviser is helping a couple plan a retirement portfolio. The adviser has recommended three stocks—Allied Electronics, Bank United, and Consolidated Computers. Following are the annual return and variance for each stock and the covariance between stocks:

Stock Annual Return Covariance Allied Electronics .14 .10 Bank United .10 .04 Consolidated Computers .12 .08 Stock Combination (i, j) Covariance A, B .4 A, C .7 B, C .3 The couple wants a total portfolio return of at least .11. Determine the proportion of each stock to include in the portfolio to minimize the overall risk. LO.1