Three venture investments previously made by BKAngel, a venture investor, achieved the following outcomes for the year j
Posted: Wed Mar 30, 2022 3:46 pm
Three venture investments previously made by BKAngel, a venture
investor, achieved the following outcomes for the year just
completed:
Venture Initial
Cash
Ending
Ven1 $1,000,000
$350,000 $750,000
Ven2 $450,000
$80,000 $400,000
Ven3 $400,000
$90,000 $460,000
A. Calculate an expected rate of return for a “portfolio” of
these three venture investments “weighted” by each venture’s
investment share of the total investment
B. Using the information in the previous question, on the 3
ventures, identify the coefficient of variation
investor, achieved the following outcomes for the year just
completed:
Venture Initial
Cash
Ending
Ven1 $1,000,000
$350,000 $750,000
Ven2 $450,000
$80,000 $400,000
Ven3 $400,000
$90,000 $460,000
A. Calculate an expected rate of return for a “portfolio” of
these three venture investments “weighted” by each venture’s
investment share of the total investment
B. Using the information in the previous question, on the 3
ventures, identify the coefficient of variation