Question: this is the same question^ I just couldnt fit in one photo. A friend you have known since childhood approaches you to invest in her

 this is the same question^ I just couldnt fit in one
photo. A friend you have known since childhood approaches you to invest
this is the same question^ I just couldnt fit in one photo.
in her high-tech start up. She has been working on the technology

A friend you have known since childhood approaches you to invest in her high-tech start up. She has been working on the technology a while, but she needs a significant sum of money to hire staff and launch the product. You have the money available and believe there's a market for the product. The investment would place you in the venture as a minority stockholder, but no extra time or work would be expected of you. At the time, risk-free Treasuries yield 4%. The S\&P500 is expected to return 8% and has a 20% standard deviation of returns. The entrepreneur has priced the potential investment to return an expected 8% going forward. Which of the following is TRUE? Negotiate to get a majority stake in the firm if you invest more money, or at least 50% The expected return for the investment does not reflect the high risk Invest with your friend given the terms provided You should counter with a lower cost to buy into the securities so they will provide a 10% return Assume that you manage a risky portfolio with an expected rate of return of 0.115 and a standard deviation of 0.4. The T-bill rate is 0.0875 A client wishes 0.75 invested in your risky portfolio and 0.25 in Treasuries. What would be the expected risk this portfolio? \begin{tabular}{l} 0.3000 \\ \hline 0.2505 \\ \hline 0.2724 \\ \hline 0.2867 \\ \hline 0.3131 \end{tabular}

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