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5. Suppose that you have $1 million and the following 2 opportunities from which to construct a portfolio: a) Risk free asset earning 12% pa.

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5. Suppose that you have $1 million and the following 2 opportunities from which to construct a portfolio: a) Risk free asset earning 12% pa. b) Risky asset with expected return of 30% pa and standard deviation of 40% If you construct a portfolio with a standard deviation of 30%, what is the expected rate of return? (4 Points) Enter your

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