In addition to risk-free securities, you are currently invested in the Tanglewood Fund, a broad-based fund of stocks and other securities with an expected return of 8.49 % and a volatility of 28.18 %. Currently, the risk-free rate of interest is 2.61 %. Your broker suggests that you add a venture capital fund to your current portfolio. The venture capital fund has an expected return of 15.36 %, a volatility of 76.54 %, and a correlation of 0.16 with the Tanglewood Fund.

Calculate the required return and use it to decide whether you should add the venture capital fund to your portfolio.