expected rate of return.A definition of the term expected rate of return is presented. It refers to the projected percentage return on an investment, based on the weighted probability of all possible rates of return.EBSCO_bspBloomsbury Business Library Business & Management Dictionary...
Define Expected return. Expected return synonyms, Expected return pronunciation, Expected return translation, English dictionary definition of Expected return. v. ex·pect·ed , ex·pect·ing , ex·pects v. tr. 1. a. To look forward to the probable occur
Definition of Expected Return Rates in the Financial Dictionary - by Free online English dictionary and encyclopedia. What is Expected Return Rates? Meaning of Expected Return Rates as a finance term. What does Expected Return Rates mean in finance?
Expected return Theexpected returnon ariskyasset, given aprobability distributionfor the possiblerates of return. Expected return equals somerisk-free rate(generally the prevailing U.S.Treasurynoteorbond rate) plus arisk premium(the difference between the historicmarket return, based upon a well diver...
Expected return of a portfolio is the weighted average return expected from the portfolio. It is calculated by multiplying expected return of each individual asset with its percentage in the portfolio and the summing all the component expected returns.
Answer to: The expected return on the market portfolio mu m = E(Rm) = 15%, the standard deviation is Sigma m = 25% and the risk-free rate is Rf =...
The expected return is calculated as:Expected Return = 0.1(1) + 0.9(0.5) = 0.55 = 55%.It is important to note that there is no guarantee that the expected rate of return and the actual return will be the same. See also: Abnormal return. Farlex Financial Dictionary. © 2012 Farlex,...
rate of returnprobability 8 percent 0.75 −14 percent 0.25 This means that the long-term average rate of return on this opportunity is 2.5 percent. Since this is a positive value, the investment might be an opportunity to consider. If the expected value had been negative, then this investme...
Why Calculate Expected Return? In the example above, expected return is a predictable figure. Most bonds by definition have a predictable rate of return. For many other investments, the expected rate of return is a long-term weighted average of historical price data. As the standard disclos...
Expected return = risk free premium + Beta (expected market return - risk free premium).Investopedia Where: ra= expected return; rf= therisk-free rate of return; β = the investment'sbeta; and rm=the expected market return The expected return above the risk-free rate of return depends on...