#3. The expected returns of the stocks of Firms A, B, and C are 10%, 12%, and 14% respectively. The covariance matrix for these three stocks is listed here: Firm A Firm B Firm C Firm A 0.008 0.002 0.000 Firm B 0.002 0.008 0.000 Firm C 0.000 0.000 0.004 The risk-free rate is 8%. (a) Suppose the investor can only invest in Firm B and Firm C. Calcu variance portfolio created from investing solely in Firms B and C late the variance of the minimum (b) Now assume the investor can invest in all three stocks. She has $2,000,000 to invest and she chooses invest $500,000 in Firm A, $1,000,000 in Firm B, and $500,000 in Firm C. Write down an express representing the variance of the resulting portfolio. This expression should only contain numbers. 1 not need to simplify the expression to receive full credit