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The following table provides a breakdown of the volatility faced by a U.S. trader investing investing in a German bond. What percentage of the total

The following table provides a breakdown of the volatility faced by a U.S. trader investing investing in a German bond. What percentage of the total return volatility is explained by the volatility in the $/€ exchange market?

Var(R_i_$)	Var(R_i)	Var(e_i)	2Cov(R_i,e_i)	DVar
12.73	1.98	9.93	0.69	0.13

		15.55%
		5.42%
		78.00%
		1.02%

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