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Suppose that you have $1 million and the following two opportunities from which to construct a portfolio: a. Risk-free asset earning 7% per year b.
Suppose that you have $1 million and the following two opportunities from which to construct a portfolio: a. Risk-free asset earning 7% per year b. Risky asset with expected return of 30% per year and standard deviation of 38%. If you construct a portfolio with a standard deviation of 32%, what is its expected rate of return? (Do not round your intermediate calculations. Round your answer to 1 decimal place.) Expected return on portfolio
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