Suppose you are investing in two stocks: A & B. You invest 40% of your budget in Stock A and 60% of your budget in Stock B. The mean return for Stock A is estimated to be 0.13 and that of Stock B is estimated to be 0.15. Moreover, the covariance matrix of these stocks is given by: Stock A Stock B The portfolio variance is: Stock A 0.06 0.03 The expected return of this portfolio is: Stock B 0.03 0.05