Evaluate this investment opportunity For TUM endowment

Question

You just joined the management team of the reputable TUM endowment which manages the assets of the university foundation. Your first project is to consider a EUR 500,000 direct-investments into a start-up founded by TUM students. Your team wants you to evaluate this investment opportunity in the context of the TUM endowment's overall asset portfolio, which corresponds to the market portfolio. Assume for simplicity that all of the incremental cash flow from the investment will arrive in one year.
Although there is no traded substitute for this investment, the you are able to come up with some scenarios for the incremental cash flows that the investment will generate. These are tied to the overall economic situation. Assume for this question that the CAPM holds and that the risk-free return over the next year is 0.5%.

The following information is given:

Assume that all items that are not specifically listed above can be neglected.

Get your Capstone Management assignment solved by our Management Experts from Exam Question Bank . Our Assignment Writing Experts are efficient to provide a fresh solution to all question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing Style. Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered.

You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turn tin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.