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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 securities with an expected return
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 7.21% and a volatility of 25.14%. Currently, the risk-free rate of interest is 2.79%. Your broker suggests that you add a venture capital fund to your current portfolio. The venture capital fund has an expected return of 23.79%, a volatility of 74.35%, and a correlation of 0.14 with the Tanglewood Fund. Calculate the required return and use it to decide whether you should add the venture capital fund to your portfolio. The required return is [%. (Round to two decimal places.) Use the result of the above calculation to determine whether you should add the venture capital fund to your portfolio. Should you add the venture fund to your portfolio? (Select from the drop-down menu.) 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 7.21% and a volatility of 25.14%. Currently, the risk-free rate of interest is 2.79%. Your broker suggests that you add a venture capital fund to your current portfolio. The venture capital fund has an expected return of 23.79%, a volatility of 74.35%, and a correlation of 0.14 with the Tanglewood Fund. Calculate the required return and use it to decide whether you should add the venture capital fund to your portfolio. The required return is [%. (Round to two decimal places.) Use the result of the above calculation to determine whether you should add the venture capital fund to your portfolio. Should you add the venture fund to your portfolio? (Select from the drop-down menu.)
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