Where: PV = present value FV = future value = $1,000 r = discount rate = 10% = 0.10 n = number of years = 5
What is the expected return of the portfolio? Ushtrime Te Zgjidhura Investime
Using the ROI formula:
ROI = ($370 - $300) / $300 = $70 / $300 = 0.2333 or 23.33% Where: PV = present value FV = future
Stock A: 40% of the portfolio, with an expected return of 12% Stock B: 60% of the portfolio, with an expected return of 15% with an expected return of 15%