Modern portfolio theory is a prescriptive theoretical model that shows what asset class mix would produce the greatest expected return for a given risk level. Behavioral finance instead focuses on ...
Every thriving business relies on a robust return on investment ... has generated or is expected to generate. You then divide that number by the costs. Here is the formula: ROI = (Net Profit ...
Merton, Robert C. "On Estimating the Expected Return on the Market: An Exploratory Investigation." Journal of Financial Economics 8, no. 4 (December 1980): 1–39.