Expected return is defined as _____.
A)the summed value of each possible rate of return discounted for inflation
B)the average probability of profit on a fair investment
C)the expected probability of high returns on an investment
D)the summed value of each possible rate of return weighted by its probability

Question

Quizplus · Accepted Answer

Expected return is the summed value of each possible rate of return weighted by its probability. This calculation takes into account the likelihood of each potential return and weighs them accordingly.

Expected Return Is Defined as _____