The expected rate of return is calculated by multiplying the potential returns of each possible outcome by their probabilities and then summing these values. The formula is: Expected Rate of Return = (Probability of Outcome 1 × Return of Outcome 1) + (Probability of Outcome 2 × Return of Outcome 2) + ... + (Probability of Outcome n × Return of Outcome n). This approach helps investors assess the average return they might anticipate from an investment based on various scenarios.
The rate of return on a security is typically compared to the expected rate of return on a portfolio to assess its contribution to overall portfolio performance. If the security's rate of return exceeds the portfolio's expected rate, it may be considered a good investment; conversely, if it falls short, it might detract from overall returns. Investors often use metrics like the Sharpe ratio to evaluate the risk-adjusted return of individual securities relative to the portfolio. This comparison helps in making informed investment decisions and optimizing asset allocation.
because the the patriots killed indians
giants have to win. they won all the matches through. patriots might lose
NO, they didnt but some called loyalists who where loyal to the British might have attacked the patriots.
A lender's expected return may be lower when the risk premium is increased on a loan because a higher risk premium often reflects an increased likelihood of default. As the perceived risk of the borrower rises, lenders may demand higher interest rates to compensate for that risk, but this can also lead to reduced loan demand or increased loan defaults. Consequently, the lender might face a situation where the potential returns are offset by losses from defaults, ultimately lowering the expected return on the loan.
It is expected to have earthquakes because a plate is under haiti
They had to give food
The Spanish Civil War was a battle between fascists and socialists. Germany and Italy aided the fascist side led by Franco. It might have been expected that Stalin might provide some aid to the socialists in Spain, however, historians believe that a victory by the socialists in Spain might drive France and England to the right and perhaps embroil the USSR in a conflict with Franco's supporters Germany and France.
They had to give food
They had to give food
They had to give food