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A portfolio is a method of minimizing the risk of loss by investing in different markets. An investment organization tries a portfolio.
The company will first deposit in a risky investment good which has an average of 15% quarterly gain.
After a quarter, they invest in a secure good which has an average of 5% a quarter, then return their customers 10% of the total money. This repeats until they close the investment.
How many will the company have after 2 years if the initial capital is N?
(Ignoring the risk rate.)
[tex]\bold{math/social/accountancy}[/tex]
[tex]\sf{Hint:Laws\:of\:exponents,\:algebraic\:identity.}[/tex]
A portfolio is a method of minimizing the risk of loss by investing in different markets. An investment organization tries a portfolio.
The company will first deposit in a risky investment good which has an average of 15% quarterly gain.
After a quarter, they invest in a secure good which has an average of 5% a quarter, then return their customers 10% of the total money. This repeats until they close the investment.
How many will the company have after 2 years if the initial capital is N?
(Ignoring the risk rate.)
[tex]\bold{math/social/accountancy}[/tex]
[tex]\sf{Hint:Laws\:of\:exponents,\:algebraic\:identity.}[/tex]
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Answer:
they invest in a secure good which has a average of 5% a quarter they returned their customer 10%of the total money