Suppose that 5 out of 10 investments made by a VC fund are a total loss, meaning that the return on each of them is -100 percent. Of the 10 investments, three break even, earning a 0 percent return. If the VC fund's expected return equals 50 percent, what rate of return must it earn on the two most successful deals to achieve a portfolio return equal to expectations?

Assume that the dollar amounts invested in each of the 10 investments are equal.Therefore, each investment gets a portfolio weight of 10%.