If average stock portfolio would yield 3.7% per annum then how much time would it take...

If average stock portfolio would yield 3.7% per annum then how much time would it take for a portfolio to increase 3 times in value if all proﬁts are reinvested?

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Expert Solution

Suppose investment amount is: 100

Yield: 3.7%

Future value = Original principal × (1 + Simple interest rate) Number of periods

300=100 (1+0.037)n

n = 30.25 years or 30 years and 3 month (appx.)

30 years and 3 month takes portfolio to increase 3 times

jeff jeffy answered 2 years ago

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