Ushtrime Te Zgjidhura Investime -

Using the future value formula:

Expected Return = (Weight of Stock A x Return of Stock A) + (Weight of Stock B x Return of Stock B) Ushtrime Te Zgjidhura Investime

PV = $1,000 / (1 + 0.10)^5 = $1,000 / 1.61051 = $620.92 Using the future value formula: Expected Return =

Stock A: 40% of the portfolio, with an expected return of 12% Stock B: 60% of the portfolio, with an expected return of 15% Ushtrime Te Zgjidhura Investime

Expected Return = (0.40 x 0.12) + (0.60 x 0.15) = 0.048 + 0.09 = 0.138 or 13.8%

If you invest $500 today, what will be the future value in 3 years, if the interest rate is 8% per annum?

ROI = ($370 - $300) / $300 = $70 / $300 = 0.2333 or 23.33%