expected return
Projected investment gain
Expected return is the anticipated profit or loss on an investment, calculated as a weighted average of possible outcomes.
It's a fundamental concept in finance for comparing investments: The expected return on this portfolio is 8% annually.
The calculation accounts for probability—a 50% chance of gaining $100 and a 50% chance of losing $50 yields an expected return of $25.
Actual returns rarely match expected returns exactly; the term describes a statistical mean, not a guarantee.
- anticipatedExpected in advance
- yieldProduce or relinquish
- profitGain exceeding expenditure
- forecastPrediction of future conditions
- projectionSomething that extends outward
risk · reward · investment · portfolio · dividend · gain · net present value · upside · probability · benchmark · alpha · beta · volatility · performance · growth · long term · time horizon · speculation
- investment returnsdividends, ROI, capital gains, profit, yield
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