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In addition to risk - free securities , you are currently invested in the Tanglewood Fund, a broad - based fund of stocks and other
In addition to riskfree securities you are currently invested in the Tanglewood Fund, a broadbased fund of stocks and other securities with an expected return of and a volatility of Currently the riskfree rate of interest is Your broker suggests that you add a venture capital fund to your current portfolio. The venture capital fund has an expected return of a volatility of and a correlation of with the Tanglewood Fund. Calculate the required return and use it to decide whether you should add the venture capital fund to your portfolio.
Answer: The required return is Round to two decimal places
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