A lot of it depends on the risk. For something that has a profile more like venture you might need a 15-20% return. There are also fixed overheads so you also need an element of scale.
replyYou characterized the risk-free interest rate as “a pretty high floor”. I find this surprising. How are 4–7% gains a pretty high floor? Year-to-year fluctuations often already are in that range.
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