Problem $7-16$

Suppose that you have $$1$ million and the following two opportunities from

which to construct a portfolio:

a$.$ Risk$-$free asset earning $8\%$ per year.

b$.$ Risky asset with expected return of $32\%$ per year and standard deviation of

$39\%.$

If you construct a portfolio with a standard deviation of $33\%,$ what is its

expected rate of return? $($Do not round your intermediate calculations.

Round your answer to $1$ decimal place.$)$