With a decrease in the level of capital protection, the minimum value of an investment product is reduced and the potential yield increases, as does the product’s riskiness. If the client assumes that the price of Apple shares will grow, then the following scenarios are possible:
Having established a 95% capital protection level, the investor would have to invest at least USD 10,000 to get a hypothetical return of 30%.
Having set 80% as the level of capital protection, the investor will have to invest USD 4,500 to obtain the greater hypothetical return of 55%.