Describe how the returns of a venture capital fund are distributed between the general partners and the limited partners (investors).
Answer to relevant QuestionsIn Figure 1–4, what has been the highest return investment category over the 79-year period? What has been the lowest? Assuming risk is measured by the standard deviation, what can you say about the relationship of risk to ...Why is the vintage year important in analyzing venture capital returns? What would be the normal strategy for a long/short equity hedge fund? What other benefits besides dollars do private equity funds bring to an early stage company? How does the Treynor approach differ from the Sharpe approach? Which of the two measures assumes unsystematic risk will be diversified away?
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