Ushtrime Te Zgjidhura Investime !!top!!

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

Using the present value formula:

FV = $500 x (1 + 0.08)^3 = $500 x 1.25971 = $629.86 Stock A: 40% of the portfolio, with an

Total Cash Flows = $100 + $120 + $150 = $370 Stock A: 40% of the portfolio

Using the portfolio return formula: