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6- Suppose that you have $1 million and the following two opportunities from which to construct a portfolio: (1 Points) a. Risk-free asset earning 12%
6- Suppose that you have $1 million and the following two opportunities from which to construct a portfolio: (1 Points) a. Risk-free asset earning 12% per year. b. Risky asset with expected return of 30% per year and standard deviation of 40%. If you construct a portfolio with a standard deviation of 30%, what is its expected rate of return
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