Returning to Problem 38, assume you follow your brokers advice and put 50% of your money in

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Returning to Problem 38, assume you follow your broker’s advice and put 50% of your money in the venture fund.

a. What is the Sharpe ratio of the Tanglewood Fund?

b. What is the Sharpe ratio of your new portfolio?

c. What is the optimal fraction of your wealth to invest in the venture fund? (Hint : Use Excel and round your answer to two decimal places.)

The Capital Asset Pricing Model AppendixLO1

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Corporate Finance The Core

ISBN: 9781292431611

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Jul 31, 2024 09:00 AM

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Returning to Problem 38, assume you follow your brokers advice and put 50% of your money in

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Corporate Finance The Core

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