Definitions for

**"expected return"****Related Terms:**Capital asset pricing model, Risk-adjusted return, Absolute return, Excess return, Alpha, Average rate of return, Efficient frontier, Required rate of return, Time-weighted rate of return, Sharpe ratio, Performance, Real return, Risk adjusted return, Holding period return, Investment risk, Roi, Alpha coefficient, Accounting rate of return, Rate of return, Capm, Sortino ratio, Tracking error, Equity risk premium, Total return, Average annual total return, Risk-free asset, Opportunity cost of capital, Underperform, Information ratio, Annualized return, Hurdle rate, Efficient portfolio, Total rate of return, Return, Investment return, Cash-on-cash return, Return on investment, Internal rate of return, Average annual return, Return-on-investment, Raroc, Nominal return, Modified internal rate of return, Weighted average cost of capital, Risk-free rate of return, Return on invested capital, Returns, Irr, Return, Capital market line

Estimation of the value of an investment, including the change in price and...

A weighted-average of possible future returns weighted by the probabilities associated with different states of the world.

The average of all possible returns an investment will produce, weighted by probability.... more on: Expected return

The ex ante return expected by investors over some future holding period. The expected return often differs from the realized return.

The return an investor might expect on an investment if the same investment were made many times over an extended period. The return is found through the use of mathematical analysis.

The expected return on a risky asset, given a probability distribution for the possible rates of return. Expected return equals some risk-free rate (generally the prevailing U.S. Treasury note or bond rate) plus a risk premium (the difference between the historic market return, based upon a well diversified index such as the S&P 500 and the historic US Treasury bond) multiplied by the assets beta. The conditional expected return varies through time as a function of current market information.

A term used to indicate the probability distribution of possible returns. Also known as the Mean Return.

A term used in security analysis to indicate the expected value (or statistical mean) of all the likely returns of investments comprising an investment portfolio. Also known as the Mean Return. The purpose of the analysis of investment portfolios is to quantify the relationship between risk and return. The underlying assumption is that investors have different risk-value preferences and that rational investors will always seek the maximum return rate for every level of acceptable risk (the mean return).

Indicates the range of likely returns for the reference period with a 95% probability, taking into consideration the past performance of the fund and its volatility.

Expected Return is the total projected return for a company and is equal to its Dividend Yield plus its Projected EPS growth rate.

An investor's expected return is equal to some risk free rate plus a risk premium multiplied by the beta of the investor's assets. For a more detailed account of the relationship between expected retun on an investment and risk, please refer to the capital asset pricing model.

A measure of the value of an investment, taking account of its current price and the estimated future cash flow to the investor. The higher the current price in relation to future estimated cash flow, the lower the expected return; the lower the price in relation to future cash flow, the higher the expected return.

average amount paid back on a Poker bet.

in online casino poker it's the average cash figure you can win on a set play for a set type of wager

Average of possible returns weighted by their probability.

The average of a probability distribution of possible returns.

the return on an uncertain investment calculated by weighting the gains or losses by the probability that they will occur.

"E(R)" is the mean value of the probability distribution of possible returns. end value - beginning value + dividend(estimate) = beginning value

the average return--a single number that combines the various possible returns per dollar invested with the chances that each of these returns will actually be paid

The expected return on a risky asset based on a probability distribution for the possible rates of return. Expected return equals some risk free rate (generally the prevailing U.S. Treasury note or bond rate) plus a risk premium (the difference between the historic market return, based upon a well diversified index such as the S&P 500 and the historic U.S. Treasury bond) multiplied by a formula that assesses the stock's or fund's risk in relation to the overall market.

a video poker term, refers to the average sum paid on a certain play for a certain wager.

The average amount of money payed back on a particular play for a particular bet. The Expected Return (ER) is the Expected Value of a play multiplied by the amount bet. Most commercially available video poker analysis programs, when analyzing a hand, give the ER of each possible play. The program may call those numbers Expected Values, but any qualified statistician will confirm that as a misnomer (see next definition).

The total amount of money (return) an investor anticipates to receive from an investment.

The long term payback on a gambling machine. This can be positive or negative, and is calculated by multiplying the house edge by the average hourly wager. See video poker expected return.

the overall profit you expect to receive from an investment in the future; may be very different from the actual returns that you eventually receive

Average return from the investment calculated as the probability weighted sum of all potential returns.

in video poker it's the average amount payed back on a particular play for a particular bet.

The average amount of money paid back.

A rather complex mathematical analysis involving statistical distribution of stock prices, it is the return which an investor might expect to make on an investment if he were to make exactly the same investment many times throughout history.

The average possible return for an investment.

The result of mathematical analysis involving statistical distributions of stock prices and their impact on the value of an investment.

The expected return is the weighted-average most likely outcome in gambling, probability theory, economics or finance.

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