Sep 18, 2025 · Learn how to calculate expected return to assess potential investment profitability, including key concepts and examples, based on historical performance data.

Guide to Expected Return Formula. Here we learn how to calculate expected return of a portfolio investment using practical examples and calculator.

May 28, 2025 · Learn how to calculate expected return using probabilities or CAPM. Includes formulas, examples, and a free Excel template to optimize portfolio returns.

Jan 26, 2024 · Read this article to know what the expected return of a portfolio is. Get the formula for calculating an expected return & learn about its limitations.

Feb 25, 2025 · Expected Return = (R1 * P1) + (R2 * P2) + … + (Rn * Pn) In this formula, R is the rate of return in a given scenario, P is the probability of that return, and n is the number of scenarios an …

We explain the expected return formula with examples and offer an easy-to-use and online expected return calculator.

It is computed as the expected return divided by the amount invested. The required rate of return is what an investor would require to be compensated for the risk borne by holding the asset; "expected …

Expected return is simply a measure of probabilities intended to show the likelihood that a given investment will generate a positive return, and what the likely return will be. The purpose of …

Dec 2, 2025 · Expected return is the weighted average of all possible returns an investment might generate, calculated using probabilities and potential outcomes. The basic formula is: Expected …

Mar 8, 2024 · Expected return serves as a tool for assessing whether an investment’s net outcome tends towards positive or negative averages. Its calculation involves the expected value (EV) of an …