2. Use the following information to answer the questions. Variance-Covariance matrix Stock H Stock I Stock J Stock H 0.010 (=Var(H)) Stock I 0.003(=Cov(H,1)) 0.090 (=Var(1) Stock J 0.020(=Cov(H.J)) 0.045(=Cov(I,J)) 0.250 (=Var(J)) You form two portfolios. You form Portfolio A by investing $6,000 in Stock H and $4,000 in Stock I while you form Portfolio B by investing $2,000 in Stock I and $8,000 in Stock J. 1) Figure out the variance for Portfolio A. (20points) 2)Given the risk-free rate of 0.02 and the expected returns of 0.04, 0.06, and 0.08 for Stocks H, I, and J respectively, figure out the expected return for Portfolio B and its Sharpe ratio. (30points)