Complete Question:
Venture capital required rate of return. Blue Angel Investors has a success ratio of 10% with its venture funding. Blue Angel requires a rate of return of 20% for its portfolio of lending, and the average length on its loans is 5 years. If you were to apply to Blue Angel for a $100,000 loan, what is the annual percentage rate you would have to pay for this loan?
Answer:
Blue Angel Venture Capital
The annual percentage rate to be paid for this loan is:
= 38%
Explanation:
a) Data and Calculations:
Blue Angel Loan = $100,000
Required rate of interest = 20%
Average length of Blue Angel loan = 5 years
Success ratio of venture funding = 10%
Annual loss sustained from loan = 20% * (100% - 10%)
= 20% * 90%
= 18%
Therefore the annual percentage rate to be paid for this loan is:
38% (20 + 18%)
b) The implication is that the required rate of return expected by Blue Angel will be weighed by its failure rate of 90%. This indicates additional cost of loan. Therefore, the total annual percentage rate is the addition of the required rate of return and the rate of loss sustained.
The correct answer is China.
China is definitely a fast-growing country, and has been for decades now, especially when it comes to technology and general production of goods. It has always been a competitor to the United States, and now it has even surpassed it when it comes to the value of competition.
The two days on which the bookstore sells about 600 books are Monday(617) and Wednesday(563).
As of Monday, the sales of the bookstore were only 617, on Tuesday it was 498 and on Wednesday it was 563. As we arrange the data in ascending order as 498<563<617. We come to the conclusion that around 600 there are only two data which are 563 and 617. So, on Monday and Wednesday, the bookstore sells about 600 books.
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Avoid, Threat, Change project plan and or scope, Improve project communications, Decide not to perform the project, Transfer, Threat Insurance is the eighth most common risk response that is used.
Mitigate
Threat
Lower probability and/or impact of threat
Build in redundancy
Use more reliable methods
3 possible responses that could work well together would be Accept, Research, and Mitigation
Preface any problem with Mitigation - reduces the probability of a risk happening ex) Obtain a key resource beforehand (most likely an expert on the topic). Also, build redundancy, and have members trained to do work of key resources if not available.
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