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

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Finance

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

a.

Risk-free asset earning 11% per year.
b.

Risky asset with expected return of 26% per year and standard deviation of 34%.

If you construct a portfolio with a standard deviation of 24%, what is its expected rate of return?

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