Question

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?


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  • CreatedMarch 26, 2015
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