Expected return - 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 the assets beta. The conditional expected return varies through time as a function of current market information.
Expected return : 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 the assets beta. the conditional expected return varies through time as a function of current market information.
Expected return