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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 12% 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 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? (Do not round your intermediate calculations. Round your answer to 1 decimal place.) Expected return on portfolio
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