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

a.	Risk-free asset earning 10% per year.
b.	Risky asset with expected return of 25% per year and standard deviation of 33%.

If you construct a portfolio with a standard deviation of 26%, what is its expected rate of return? (Do not round your intermediate calculations. Round your answer to 1 decimal place. Omit the "%" sign in your response.)

Expected return on portfolio

%

rev: 01_05_2015_QC_CS-98