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Describe the portfolio weights by referring to Tables 3 and Table 4. ...

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Finance

Describe the portfolio weights by referring to Tables 3 and Table 4.

Table 3: Summary Statistics
Historical Average Return Standard Deviation of Historical Retuns Correlations Between Historical Returns
Stock 1 Stock 2 Stock 3 Stock 4 Stock 5
Stock 1 2.612132% 8.115020% Stock 1 0.07539459 0.331031926 0.306490415 0.33092996
Stock 2 0.965416% 8.240133% Stock 2 0.07539459 0.274593584 0.251195786 0.386210275
Stock 3 1.706690% 6.420282% Stock 3 0.331031926 0.274593584 0.366276317 0.480517578
Stock 4 1.976280% 7.879385% Stock 4 0.306490415 0.251195786 0.366276317 0.352060242
Stock 5 1.475961% 7.225175% Stock 5 0.33092996 0.386210275 0.480517578 0.352060242

Table 4: Portfolio Weights
Name of the Company Weight That Maximizes Sharpe Ratio
Apple, Inc. 0.449388147
AbbVie, Inc. 0.029175393
Nike, Inc. 0.289622337
Target Corporation 0.227208654
American Express Company 0.004605469

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