What rate of return it earn on two most successful deals

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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 percent.

Of the ten investments, three break even, earning a 0 percent return. If the VC fund's expected return equals 50 percent, what rate of return must it earn on the two most successful deals to achieve a portfolio return equal to expectations?

Reference no: EM131315591

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