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.

The expected rate of return is the expected return per currency unit (e.g., dollar) invested. It is computed as the expected return divided by the amount invested.

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.

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: …

Feb 25, 2025 · Looking for the expected return formula? Learn how to calculate an investment’s expected return, along with the value of the expected RoR formula.

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 …

Jul 24, 2024 · Calculating the expected return on an investment is fundamental in financial theory. Asset allocation models such as the Black-Litterman model and those that analyze the risk …

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 …