# Venture Risk-Adjusted Return Engine AI Agent Connect

> Calculate risk-adjusted returns, Sharpe ratios, and expected values for venture investments.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_Pucfi3AevupuCZqMoXU0S6MaRr2ZRC5Co9nJMf3H/ai-agent-connect
- **Tags:** risk-analysis, investment, venture-capital, returns, portfolio-management

## Description

This MCP server provides specialized calculation tools for venture capitalists to evaluate investment opportunities. It adjusts expected returns against failure probabilities, time horizons, and portfolio-level risk factors. Use `calculate_investment_metrics` to get a full performance overview, `compare_stage_risks` to analyze developmental shifts, `evaluate_sector_volatility` for industry-specific impacts, and `get_portfolio_impact` to understand how individual high-risk assets affect total portfolio stability.

## Tools

### calculate_investment_metrics
Provides a comprehensive overview of an investment's risk-adjusted performance

### compare_stage_risks
Answers how the risk profile changes when moving an investment from one developmental stage to another

### evaluate_sector_volatility
Determines how much a specific sector's volatility will impact the overall expected value

### get_portfolio_impact
Calculates how a single high-risk investment affects the total portfolio's risk-adjusted stability

## Prompt Examples

**Prompt:** 
```
Calculate the metrics for an investment with a 50% expected return, 80% failure rate, and a 5-year exit timeline.
```

**Response:** 
```
The risk-adjusted return is 10.0%, the Sharpe ratio equivalent is 0.5, and the expected value is 0.1.
```

**Prompt:** 
```
What is the impact of moving an investment from Seed stage to Series A if the current failure rate is 0.85?
```

**Response:** 
```
The failure rate delta is -0.15, resulting in a moderate risk profile shift.
```

**Prompt:** 
```
How much will a 0.7 failure rate investment affect my portfolio if my current diversification is 0.5?
```

**Response:** 
```
The net portfolio risk is 0.35, providing a diversification benefit of 0.15.
```

## Frequently Asked Questions

**How does this tool account for the possibility of total loss?**
The engine uses the failure rate to calculate the risk-adjusted return and expected value, ensuring the probability of losing the entire principal is factored into the performance metrics.

**Can I adjust for specific industry risks?**
Yes, you can use `evaluate_sector_volatility` to determine how specific sector volatility impacts your expected value.

**How is portfolio diversification handled?**
You can use `get_portfolio_impact` to calculate how a single investment affects the total portfolio's risk-adjusted stability based on your current diversification level.