Stock A: 40% of the portfolio, with an expected return of 12% Stock B: 60% of the portfolio, with an expected return of 15%
Expected Return = (0.40 x 0.12) + (0.60 x 0.15) = 0.048 + 0.09 = 0.138 or 13.8% Ushtrime Te Zgjidhura Investime
Where: FV = future value PV = present value = $500 r = interest rate = 8% = 0.08 n = number of years = 3 Stock A: 40% of the portfolio, with an
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