Questions Mean St. Dev. Variance 0.0200 14.00% 14.14% Asset/Investment | IBM Caterpillar John Deere Risk-free savings 1 70% IBM and 30% risk-free bond Expected Return Variance 0.0180 12.00% 12.00% 2.00% 0.0150 0.0000 13.42% 12.25% 0.00% IBM John Deere Risk-free Covariances | IBM Caterpillar JohnDeere Risk-free savings Caterpillar -0.0038 0.0180 0.000 0.0035 0.0082 2 40% IBM and 60% John Deere Expected Return Variance 0.000 0.0200 -0.0038 0.0035 0.000 0.0082 0.000 0.0150 0.000 0.000 0.000 IBM John Deere Risk-free Caterpillar -0.200 1 0 Correlations | IBM Caterpillar John Deere Risk-free savings 0.200 0.500 3 40% IBM and 60% Caterpillar Expected Return Variance -0.200 1 0 1 0 0.200 0 0.500 0 0 1 Caterpillar is a riskier investment than John Deere (it has a larger variance). Compare the amount of risk associated with the simple portfolios in questions 2 and 3. Which portfolio has less risk and why? Type answer here