expected return

Definition

Estimation of the value of an investment, including the change in price and any payments ordividends, calculated from a probability distribution curve of all possible rates of return. In general, if an asset is risky, the expected return will be the risk-free rate of return plus a certain risk premium. also called expected value.



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Related terms:

Capital Asset Pricing Model, capital market line, efficient portfolio, mean return, optimization, speculative stock, CAPM, duration, exante return, inefficient portfolio  and  

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