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.




expected return is ...
... part of the
Strategies and Investor Relations subjects.


Related Terms

Capital Asset Pricing Model -  More
capital market line -  More
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mean return, optimization, CAPM, duration, exante return, inefficient portfolio, information ratio, modern portfolio theory, risk-averse, risk neutral


expected return appears in the definitions of these other terms on BusinessDictionary.com

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