1. Variance of return of stock P=100.0
2. Variance of return of stock Q=225.0
3. Covariance between the return of stock P and the return of stock Q=53.2
At the end of 1999, you are holding USD 1 million in stock P. you are considering a strategy of shifting USD 1 million into stock Q and keeping USD 3 million in stock P. What percentage of risk is reduced?