You should add the venture capital fund to your portfolio

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Reference no: EM131608753

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 10.08 and a volatility of 29.73%. Currently, the? risk-free rate of interest is 3.57%. Your broker suggests that you add a venture capital fund to your current portfolio. The venture capital fund has an expected return of19.41%?, a volatility of 72.44%?, 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: EM131608753

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