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

7.64%

and a volatility of

31.57%.

Currently, the risk-free rate of interest is

2.85%.

Your broker suggests that you add a venture capital fund to your current portfolio. The venture capital fund has an expected return of

24.35%,

a volatility of

75.59%,

and a correlation of

0.13

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