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What Is Expected to Return?
Expected return profit or loss the investor does not expect from an investment known as historical rates of return (RoR). It is calculated by repeating the possible consequences of the probability and then combining these outcomes.
Expected Return Example
Expected return does not apply to just one collateral or asset. It can also be expanded to analyze a portfolio that contains multiple investments. If the expected return on each investment is known, all the expected return on the portfolio is the average return on its share.
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