Examlex
Assume that you expect to hold a $20,000 investment for one year.It is forecasted to have a yearend value of $21,000 with a 30% probability; a yearend value of $24,000 with a 45% probability; and a yearend value of $30,000 with a 25% probability.What is the expected holding period return for this investment?
Yearly Payment
The amount of money paid or received over the course of a year for any financial transaction or obligation.
Effective Yield
The total yield of an investment after accounting for compounding interest, often expressed on an annual basis.
Perpetuity
A financial term referring to a type of annuity that pays a series of payments indefinitely, with no end.
10-Year Bond
A financial instrument issued by governments or corporations promising to pay back borrowed funds with interest over a ten-year period.
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