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.

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 …

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.

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

Jan 26, 2024 · Expected returns are used in capital budgeting to compare the profitability of investments with different cash flows over time. They are used by investors seeking to determine whether an …

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 …

Dec 12, 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 …

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 …

Aug 6, 2023 · To calculate the portfolio’s expected return, you take the expected returns of each security in the portfolio. Then, you multiply each security’s expected return by its proportion in the portfolio …