[Three-asset portfolio] (15 pts)

Use the 3-asset portfolio return/risk formula to calculate the following portfolios expected return and risk.

Asset Class	Portfolio weight	Expected return	Expected risk
Stocks (S)	60%	12%	20%
Bonds (B)	30%	8%	10%
Cash equivalent (C)	10%	4%	3%

Correlation table:

Asset Class	Stocks (S)	Bonds (B)	Cash equivalent (C)
Stocks (S)	1
Bonds (B)	0.25	1
Cash equivalent (C)	-0.08	0.15	1