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If the value of the principal today is $10,250 and the interest rate is 1.5%,what is the value of the principal at the end of three years?
Arbitrage Opportunity
A situation where a trader can make a profit without risk by simultaneously buying and selling the same or equivalent assets in different markets to exploit price differences.
Risk-free Rate
A theoretical return on an investment with zero risk of financial loss, often represented by government bonds.
Alpha
Alpha is a financial metric indicating the performance of an investment relative to a benchmark index, representing the extra value that a portfolio manager adds or subtracts from a fund's return.
Expected Rate of Return
The projected percentage return on an investment over a given period, factoring in all known variables.
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