# expected value

## Definition

**also called**mathematical expectation.

## Use expected value in a sentence

“ You need to come up with an expected value on any investment to see if it will be worth taking on. ”

“ The expected value calculation clearly showed which decision provided the largest amount of profit so we continued that process for each security. ”

“ When the expected value of an investment is positive, the Kelly criterion can be used to determine the optimal amount to invest based on the investor's available capital. ”