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

1. Risk-free asset earning 14% per year.

2. Risky asset with expected return of 29% per year and standard deviation of 37%.

If you construct a portfolio with a standard deviation of 28%, what is its expected rate of return? (Do not round your intermediate calculations. Round your answer to 1 decimal place.)

rev: 10_25_2018_QC_CS-144467