(EXCEL Question) You are asked to create an optimal minimum variance portfolio using three stocks (FB, TSLA, BA). Find optimal weights for the minimum variance portfolio satisfying the following condition:

where w₁ is an weight allocated to FB, w₂ is an weight allocated to TSLA,  and  w₃ is an weight allocated to BA. The average returns for FB, TSLA, BA are -0.28%, 0.99%, -0.39%, respectively. The covariance matrix is given by

	FB	TSLA	BA
FB	0.04%	0.04%	0.02%
TSLA	0.04%	0.41%	0.02%
BA	0.02%	0.02%	0.04%

1. The optimal weight for FB is [A]%. (Note: round to th nearest hundredth.)

2. The optimal weight for TSLA is [B]%. (Note: round to th nearest hundredth.)

3. The optimal weight for BA is [C]%. (Note: round to th nearest hundredth.)

		22.22
		2.78
		75.00

Answer rating: 100% (QA)

The standard deviation of a portfolio is given by Where Wi is the weight ... View the full answer