There is a portfolio which consists of four stocks: IBM, APPL, BA, and NFLX. The average monthly stock returns for IBM, APPL, BA, and NFLX are 1.46%, 1.25%, 2.87%, and 1.80%. The standard deviation for IBM, APPL, BA, and NFLX are 3.22%, 4.70%, 4.33%, and 2.79%. Also, the covariances and variances are summarized as in the below table.

	IBM	AAPL	BA	NFLX
IBM	0.10%
AAPL	0.05%	0.22%
BA	0.04%	0.02%	0.19%
NFLX	0.01%	0.06%	0.07%	0.08%

1. The equal weighted portfolio return is %. (Round to the nearest tenth.)

2. The equal weighted portfolio risk (i.e., standard deviation) is %. (Round to the nearest tenth.)

Using all the values in Problem 1, calculate the optimal weights for four stocks (IBM, AAPL, BA, NFLX) to get a minimum variance portfolio satisfying the following conditions.

• The sum of all the weights is equal to one.
• All the weights are greater than zero.

In short, to answer this problem, solve the following optimization problem.

Where:

W₁ = IBM

W₂ = AAPL

W₃ = BA

W₄ = NFLX

1. The optimal weight on W₁ = %. (Round to the nearest integer.)

2. The optimal weight on W₂ = %. (Round to the nearest integer.)

3. The optimal weight on W₃ = %. (Round to the nearest integer.)

4. The optimal weight on W₄ = %. (Round to the nearest integer.)

5. The portfolio return is %. (Round to the nearest tenth.)

6. The portfolio risk is %. (Round to the nearest tenth.)