Ushtrime Te Zgjidhura Investime _hot_ -

Year 1: $100 Year 2: $120 Year 3: $150

ROI = ($370 - $300) / $300 = $70 / $300 = 0.2333 or 23.33% 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% Year 1: $100 Year 2: $120 Year 3:

PV = FV / (1 + r)^n

FV = $500 x (1 + 0.08)^3 = $500 x 1.25971 = $629.86 Ushtrime Te Zgjidhura Investime

What is the expected return of the portfolio?

An investment generates the following cash flows: