d. Technology portfolio: Jackson builds his own portfolio using three US stocks, Apple Inc (AAPL), Tesla Inc (TSLA), and Microsoft Corp (MSFT). He calculates the monthly expected returns R1, R2, R3 and stan- dard deviations 01, 02, 03 for the three stocks respectively (see below for hints). He then decides the weight for each stock by maximizing wTR - , (1) - with respect to w = (w1, W2, W3). Here, w is a vector with w; being the percentage of total investment he puts in stock i, with w; > 0 for i = 1, 2, 3. Moreover, R = (R1, R2, R3); and is the covariance matrix for the returns. After 8 years, he will rebalance his portfolio by adding Nvidia Corp (NVDA) (with expected return R and standard deviation 4) to his investment. The rebalancing is done such he maximizes WR - ' , (2) with respect to w = (1, W2, W3, W4) T. Here, w is a vector with w; being the percentage of total investment he puts in stock i, with w; > 0 for i = 1,2,3,4; R* = (R1, R2, R3, R4); and is the covariance matrix for the returns (now including NVDA). 1 == After determining the weights, he invests in this carefully designed portfolio. He projects the future returns to be normally distributed. The mean and variance for the first eight years are wTR and wEw, respectively; and for the last two years are w R* and w*w, respectively.