You Have Been Offered the Following Investment Opportunity,if You Pay

question 67

Essay

You have been offered the following investment opportunity,if you pay $2500 today,you will receive $1000 at the end of each of the next three years.Draw a timeline detailing this investment opportunity.

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Definitions:

Fixed Rate

An interest rate that remains constant over the life of a loan or investment.

Portfolio's Beta

A measurement of the volatility or systematic risk of a portfolio in comparison to the market as a whole.

S&P500 Value

The total market value of all stocks listed in the S&P 500 index, reflecting the performance of 500 large companies listed on stock exchanges in the United States.

Portfolio Value

The total worth of all investments in a portfolio, calculated by summing the current values of all assets held.