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Calculate the Future value of the following:
A. First FV:
1. Interest 8%
2. Compounds quarterly
3. Present value $75,000
4. Time five years
B. Second FV:
2. Compounds Daily
C. What is the spread of the two calculations and why has there been a change when everything is the same except the number of compounds.
Assume the portfolio return is 9 percent per year. What is the value of $1 invested in each share class if your investment horizon is 3 years?
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