In addition to risk-free securities

Assignment Help Financial Management

Reference no: EM131625455

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 7.16% and a volatility of 26.94%. Currently, the risk-free rate of interest is 3.31%. Your broker suggests that you add a venture capital fund to your current portfolio. The venture capital fund has an expected return of 25.78%, a volatility of 74.84 %, and a correlation of 0.18 with the Tanglewood Fund. Calculate the required return and use it to decide whether you should add the venture capital fund to your portfolio.

Reference no: EM131625455

Questions Cloud

Evidence by explaining how the evidence logically supports : Analyze the evidence by explaining how the evidence logically supports or fails to support the argument's conclusion,

The employee refused to violate law : which the employer fired an employee because the employee refused to violate a law which is considered an example of wrongful discharge. "Employment-at-will".

Discuss nature-strength of each of five competitive forces : Briefly discuss the nature and strength of each of the five competitive forces in the coffee industry.

Use three-stage and h-model valuation methods : Growth will transition from 15% down to 5% gradually, If you believe that the transition will take five years, Use three-stage and H-model valuation methods.

In addition to risk-free securities : In addition to risk-free securities, you are currently invested in the Tanglewood Fund,

Production and consumption and specialization : Specialization-Production and Consumption. What is the production and consumption of China and France without trade?

Calculate the price and ytm of four year bond : Using the spot rates, calculate the price and ytm of a 4-year bond that pays a 4.125% coupon rate (assume annual payments).

Determine two type of hedges regarding foreign exchange risk : Determine two types of hedges regarding foreign exchange risk, in general, and recommend the most advantageous risk mitigation strategy for XYZ, Inc.

Accounting assumptions underlying each currently used method : Determine the main accounting assumptions underlying each currently used method.

User Account

All Pages