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10. Moss Brothers' Alpha Team is constructing a portfolio with $1,000,000 from 2 securities nick named Mala and Bindi for presentation to a HNW client.

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10. Moss Brothers' Alpha Team is constructing a portfolio with $1,000,000 from 2 securities nick named Mala and Bindi for presentation to a HNW client. Mala is a risk free security earning 8% and Bindi is a very risky security with expected returns of 30% pa and SD of 40. The team's plan is for the portfolio to have a SD of 25, which the client has requested. What is the expected rate of return? (5 Points)

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