If you invest $500 today, what will be the future value in 3 years, if the interest rate is 8% per annum?
FV = $500 x (1 + 0.08)^3 = $500 x 1.25971 = $629.86 Ushtrime Te Zgjidhura Investime
Year 1: $100 Year 2: $120 Year 3: $150
What is the expected return of the portfolio? If you invest $500 today, what will be
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