Glossary of Terms

Expected Return 2015-11-10 08:00:00

Expected Return

The amount an investor would anticipate receiving on an investment that has various known or expected rates of return.

For example, if an investment has a 50% chance of producing a 20% return, and a 50% chance of producing no return, then the expected return is 10% ((50% x 20%) + (50% x 0%)). There is no guarantee that the expected return will equal the actual return.


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