Michael Boyle is an experienced financial professional with more than 10 years working with financial planning, derivatives, equities, fixed income, project management, and analytics. Vikki ...

An investment’s “expected return” is a critical number, but in theory it is fairly simple: It is the total amount of money you can expect to gain or lose on an investment with a predictable ...

Expected value (EV) is a formula that investors use to estimate the likely average return they might earn from an investment over time. They use expected value to estimate the worth of investments ...

The cost of equity formula is a financial metric that represents the return investors expect for holding a company's stock. This formula can help you evaluate whether a company's stock is ...

Under uncertain circumstances, the probabilities of possible outcomes can be used to calculate expected return. Expected return of irregular cash flows is calculated using the same formula as the ...

Return on investment (ROI) is a metric used to understand the profitability of an investment. ROI compares how much you paid for an investment to how much you earned to evaluate its efficiency ...

To calculate a portfolio's expected return, you need to compute the expected return of each of your holdings and its weight. The basic expected return formula involves multiplying each asset's ...

Internal rate of return (IRR) is the expected average return of an investment. IRR is commonly used in corporate finance and is similar to the compound annual growth rate (CAGR), which is more ...

There are a few key trends to look for if we want to identify the next multi-bagger. Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an ...

Learn what Weighted Average Cost of Capital (WACC) is, how to calculate it, and its significance in evaluating investment opportunities.

Expected return includes capital gains and interest payments or dividends and is calculated by taking an average of the probability distribution of all possible returns. If an investment had a 50% ...