If you construct a portfolio with a standard deviation of


Suppose that you have $1 million and the following two opportunities from which to construct a portfolio: Risk-free asset earning 8% per year. Risky asset with expected return of 23% per year and standard deviation of 31%. If you construct a portfolio with a standard deviation of 22%, 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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Financial Management: If you construct a portfolio with a standard deviation of
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