Three venture investments previously made by BKAngel, a venture investor, achieved the following outcomes for the year
Question:
A. Calculate the percentage rate of return for each of the venture investments.
B. Calculate the expected rate of return for a portfolio of these three venture investments weighted by each ventures investment share of a total $1 million investment.
C. Calculate the variance and standard deviation of the rates of returns for the portfolio investment.
D. Calculate the coefficient of variation of the rates of returns for the portfolio investment. Is this portfolio investment less or more risky than another investment opportunity with a coefficient of variation of1.5?
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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Related Book For
Entrepreneurial Finance
ISBN: 978-0538478151
4th edition
Authors: J . chris leach, Ronald w. melicher
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