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Suppose that you have $1 million and the following two opportunities from which to construct a portfolio: Risk-free asset earning 7% per year. Risky asset

Suppose that you have $1 million and the following two opportunities from which to construct a portfolio:

  1. Risk-free asset earning 7% per year.

  2. Risky asset with expected return of 22% per year and standard deviation of 30%.

If you construct a portfolio with a standard deviation of 24%, what is its expected rate of return? (Do not round your intermediate calculations. Round your answer to 1 decimal place.)

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