Given the below information:

Please determine the Expected Return and the Variance of both portfolios Assuming risk free=2%, which portfolio would you choose? Why?

Portfolio A Stock i Stock j Stock k Portfolio B Stock s Stock t Stock w Weight E(r) Var(r) 30% 20% 35% 40% 25% 19% 30% 10% 25% 30% 10% 23% 60% 15% 29% 10% 6% 15% Covariance Matrix Portfolio A Stock i Stock j Stock k Stock i Stock jStock k 0.3 0.4 0.3 0.15 0.4 0.15 Stocks Stockt Stock w 0.25 0.35 0.25 0.2 0.35 0.2 Covariance Matrix Portfolio B Stocks Stockt Stock w Please determine the Expected Return and the Variance of both portfolios Assuming risk free=2%, which portfolio would you choose? Why? Portfolio A Stock i Stock j Stock k Portfolio B Stock s Stock t Stock w Weight E(r) Var(r) 30% 20% 35% 40% 25% 19% 30% 10% 25% 30% 10% 23% 60% 15% 29% 10% 6% 15% Covariance Matrix Portfolio A Stock i Stock j Stock k Stock i Stock jStock k 0.3 0.4 0.3 0.15 0.4 0.15 Stocks Stockt Stock w 0.25 0.35 0.25 0.2 0.35 0.2 Covariance Matrix Portfolio B Stocks Stockt Stock w Please determine the Expected Return and the Variance of both portfolios Assuming risk free=2%, which portfolio would you choose? Why