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Business, 21.08.2021 04:10 jetskiinbunny31

You are asked to create an optimal tangent portfolio using three stocks (FB, TSLA, BA) assuming a risk-free rate is zero. Find optimal weights for the tangent portfolio satisfying the following condition: w subscript 1 plus w subscript 2 plus w subscript 3 equals 1 w subscript 1 greater or equal than 0 w subscript 2 greater or equal than 0 w subscript 3 greater or equal than 0 where w1 is a weight allocated to FB, w2 is a weight allocated to TSLA, and w3 is a 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 %. (Note: round to the nearest hundredth.) 2. The optimal weight for TSLA is %. (Note: round to the nearest hundredth.) 3. The optimal weight for BA is %. (Note: round to the nearest hundredth.)

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