The __________ return is the average projected return of an asset in different states of the economy.
A) Variable
B) Realized
C) Portfolio
D) Expected
E) Potential

Question

Quizplus · Accepted Answer

Expected return is defined as the average projected return of an asset in different states of the economy. It is calculated by weighting each possible return by the probability of its occurrence and summing them. The expected return is a key component in determining the value of an investment and is used to calculate the risk-return tradeoff. Hence, the best choice is option D - expected return.

The __________ Return Is the Average Projected Return of an Asset