Suppose that five out of ten investments made by a VC fund are a total loss, meaning that the return on each of them is −100%. Of the ten investments, three break even, earning a 0 percent return. If the VC fund’s expected return equals 50%, what rate of return must it earn on the two most successful deals to achieve a portfolio return equal to expectations?
Answer to relevant QuestionsThrough your financial services firm, Vestin Capital, Incorporated, you have raised a pool of money from clients. You intend to invest it in new business opportunities. To prepare for this endeavor, you decide to answer the ...What is the signaling theory of mergers? What is the relationship between signaling and the mode of payment used in acquisitions? Is there a relationship between the mode of payment used in acquisitions and the level of ...Describe the relationship between conglomerate mergers and portfolio theory. What is the desired result of merging two unrelated businesses? Has the empirical evidence proven corporate diversification to be successful? Shareholders of the firm Up-4-Grabs (U4G) have been offered $36.00 per share in cash for each of their U4G shares currently selling for $29.53. What is the control premium being offered in this cash deal? U4G is also ...Firms AFD, TYU, CHG, and LAN are competitors within an industry. Their respective sales figures are $2.8 billion, $3.9 billion, $4.8 billion, and $2.1 billion. What is the Herfindahl Index (HI) for the industry? Is the ...
Post your question