2. Use the following information to answer the questions. Variance-Covariance matrix Stock H Stock I Stock J Stock H 0.0169 Stock I 0.0026 0.0400 Stock J 0.0156 -0.0090 0.0225 1) You form two portfolios. You form Portfolio A by investing S4,000 in Stock H and $6,000 in Stock I while you form Portfolio B by investing $5,000 in Stock I and $5,000 in Stock J. a) Given the expected return of 6%, 10%, and 8% for Stocks H, I, and J respectively, Figure out the expected return for Portfolios A and B. (30points) b) Figure out the standard deviation for Portfolios A and B. (40points) c) Given the risk free rate of 3%, figure out the Sharp ratio for Portfolios A and B and choose a better portfolio. (20points)