Portfolio Expected Rate of Return and Risk Measures-Refer to Problem 5. Assume that BK Angel’s initial investments in the three ventures had been Venture 1 = $500,000, Venture 2 = $300,000, and...


Portfolio Expected Rate of Return and Risk Measures-Refer to Problem 5. Assume that BK Angel’s initial investments in the three ventures had been Venture 1 = $500,000, Venture 2 = $300,000, and Venture 3 = $200,000, with each investment having achieved the same cash flows and ending values shown in Problem 5.


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 venture’s investment share of a total $1 million investment.


C. Calculate the variance, standard deviation, and coefficient of variation of the rates of returns for the portfolio investment.



May 25, 2022
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