Previous Page

Expected rate of return

AnalyticsTrade Team
AnalyticsTrade Team Last updated on 26 Apr 2023

Table of Contents

Expected Rate of Return

Expected rate of return is a term used in finance to describe the anticipated return on an investment. It is a measure of the expected return on an investment over a given period of time. The expected rate of return is calculated by taking into account the expected returns from all possible outcomes of the investment. It is used to compare different investments and to determine the risk associated with each investment.

History of Expected Rate of Return

The concept of expected rate of return has been around since the early 1900s. It was first used by economists to measure the expected return on investments. The concept was later adopted by financial advisors and investors to help them make informed decisions about their investments. The expected rate of return is an important tool for investors as it helps them to assess the risk associated with an investment and to compare different investments.

Comparison Table

Investment Expected Rate of Return
Stock Market 7-10%
Bonds 2-5%
Real Estate 4-7%

Summary

Expected rate of return is an important concept in finance that is used to measure the expected return on an investment over a given period of time. It is used to compare different investments and to assess the risk associated with each investment. For more information about expected rate of return, you can visit websites such as Investopedia and The Balance.

See Also

  • Risk-adjusted return
  • Real rate of return
  • Portfolio return
  • Time value of money
  • Capital asset pricing model
  • Sharpe ratio
  • Beta coefficient
  • Standard deviation
  • Covariance
  • Correlation coefficient

Do you like the post? Share it now:

AnalyticsTrade Team

AnalyticsTrade Team

🎉 Introducing AnalyticsTrade's exceptional team of expert analysts! 🌟 These seasoned pros have been dominating the capital market, trading a diverse range of assets for more than 15 years! 📈💹 Get ready to level up your game with our top-notch, captivating resources in the capital market! 🚀📚

Was this article helpful?

X

Thank You for Contacting Us!

Your email has been successfully submitted and we will get in touch with you shortly