You should add the venture capital fund to your portfolio

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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 9.45% and a volatility of 33.38%. ?Currently, the? risk-free rate of interest is 3.76%. Your broker suggests that you add a venture capital fund to your current portfolio. The venture capital fund has an expected return of 23.96%?, a volatility of 75.47%?, and a correlation of 0.12 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 turn is ______%

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? (Yes or No)

Reference no: EM131870871

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