What Is Expected Rate of Return
Company 1 Discount Store Everything 5 Forecasted Return 12 11 Standard deviation of 8 10 returns Beta 15 10. What is the expected rate of return for a stock that has a beta of 1 if the expected return on the market is 15. How Capm Relates With The Risk And Return Https Www Bbalectures Com How Capm Relates With The Risk And Return Business Articles Capital Assets Risk The expected rate of return is a crucial guide to what an investor can expect a given investment or portfolio of investments to return. . The expected rate of return is the return on investment that an investor anticipates receiving. Expected return is calculated using the probability of different potential outcomes. Learn About Our Financial Advisor Services. The trees will mature in 12 years at which time Paul plans to sell the forest at an expected price of 10 million. So for comparison purposes the RRR is the minimum possible rate that would entice you to ...