Question: Question 7 1 pts There are three assets, with expected returns over next year 3%, 4% and 7% respectively. Asset 1 is risk-less, while Standard

Question 7 1 pts There are three assets, with expected returns

Question 7 1 pts There are three assets, with expected returns over next year 3%, 4% and 7% respectively. Asset 1 is risk-less, while Standard deviation of assets 2 and 3 are 8% and 16% respectively. Correlation between assets 2 and 3 is 0.5. An equally weighted portfolio is formed with the three assets. What is the risk of the portfolio? 7.05% 8.55% 6.12% 5.00%

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