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 ...

The expected return of each asset can be estimated based on historical data, financial models, or analyst forecasts. Calculate the portfolio weights. Determine what percentage of your total ...

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 ...

In formulas, lower case "r" usually represents the required rate of return. R E is usually expected return. R M is usually the return on the market as a whole.

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 ...

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 ...