1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
amid [387]
3 years ago
7

In addition to​ risk-free securities, you are currently invested in the Tanglewood​ Fund, a​ broad-based fund of stocks and othe

r securities with an expected return of and a volatility of . ​Currently, the​ risk-free 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. The required return is nothing​%. ​ (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?
Business
1 answer:
Murrr4er [49]3 years ago
7 0

Answer:  6.29%

Explanation:

Required return = Risk free rate + beta ( expected return - risk free rate)

Beta.

= Correlation * \frac{Volatility of venture}{Volatility of fund} \\\\= 0.16 * \frac{0.8117}{0.2636} \\\\= 0.493

Required return = 3.63% + 0.493(9.03% - 3.63%)

= 6.29%

You might be interested in
A(n) ________ veto allows the governor to cross out budget lines in the legislature-approved budget, while signing the remainder
Cerrena [4.2K]
Line item veto, its the power to strike out individual items in the state budget

4 0
2 years ago
Read 2 more answers
What is the role of the Federal Reserve in the U.S. economy?
lys-0071 [83]

Answer: The correct answer:

A. Managing monetary policy.

5 0
1 year ago
It’s up to you to do some research on a company before an interview. Recruiters will expect that you’ve done your homework, and
Inga [223]

Answer: what to expect in an interview session

Explanation:) because good person-organization fit is linked to higher task performance, better work attitudes, lower intentions to quit, and less job stress; and  

(2) because showing up at an interview having done your research shows recruiters that you took the time to learn about the business and prepares you to ask good questions. The goal of this exercise is to challenge your knowledge of the seven things you should learn about  acompany before showing up for an interview .  Every Recruiter expect that you know what you are doing and also brush yourself up with information on your Resume and the company in question

4 0
3 years ago
When originally purchased, a truck costing BD 23.000 had an estimated useful life of 8 years and an estimated salvage value of B
GREYUIT [131]

Answer:

d. BD 2,500

Explanation:

Accumulated Depreciation through the end of year 4 = [ Asset's cost - Salvage Value) / Estimated Useful Life] * Years Elapsed

= [(23,000 - 3,000)/8] * 4

= BD 10,000

Depreciation in Year 3 = [Asset's cost - Salvage Value - Accumulated Depreciation] / Remaining Estimated Useful Life

Depreciation in Year 3 = [23,000 - 3,000 - 10,000] / 4

Depreciation in Year 3 = 10,000 / 4

Depreciation in Year 3 = BD 2,500

6 0
3 years ago
Smart lites is a company that manufactures lighting products for industrial businesses. the managers at smart lites want to incr
nexus9112 [7]

The correct answer in the space provided is the total quality management. The total quality management is where it is responsible for causing an improvement in regards of improving the ability of an organization or group in a way of delivering their services or products to their consumers.

5 0
3 years ago
Other questions:
  • Gross Investment $18
    9·1 answer
  • An ad agency in atlanta, georgia, buys a quarter-page ad in a golfing magazine for a travel agency that specializes in preparing
    15·1 answer
  • 19. Which of the following herbs has an anise flavor?
    10·1 answer
  • The Peter's Group originated four years ago, and since then, the company has grown each year. Management has focused on making s
    6·1 answer
  • Time is an important factor when evaluating a managed mutual fund for which of the following?
    15·1 answer
  • Which answer best describes an unsubsidized federal loan?
    10·1 answer
  • True or false. in the real world, decreases in ad normally lead to decreases in both output and the price level.
    11·1 answer
  • I forgot my user name and password. Can u help me?
    10·2 answers
  • Assume the marginal propensity to consume is 0.75. What will happen if government spending increases by $100 billion
    8·1 answer
  • Adrian is one of several engineers applying for a job recently advertised on the internet. While writing his email cover letter,
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!