You plan to put your money into three types of assets: stocks, bonds, and a cash money market account. Their expected returns and risks are given in the following table. 

	Return	Covariate Risk
	(percent)	stocks	bonds	cash
Stocks	8	3	-1	0
Bonds	5	-1	1	0
Cash	1	0	0	0

What will be the average (individual) risk if you put 13% into stocks, 12% into bonds, and the rest into the cash money market account? Give your answer in percent rounded to a single decimal (e.g., for 3.56% write 3.6).

Answer rating: 100% (QA)

To calculate the average individual risk we need to calculate th... View the full answer