enow.com Web Search

Search results

1. Results from the WOW.Com Content Network

2. Expected return - Wikipedia

   en.wikipedia.org/wiki/Expected_return

   When we calculate the expected return of an investment it allows us to compare it with other opportunities. For example, suppose we have the option of choosing between three mutually exclusive investments: One has a 60% chance of success and if it succeeds it will give a 70% ROR (rate of return).

3. Calculating the Expected Return of a Portfolio

   www.aol.com/news/calculating-expected-return...

   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 ...

4. Modern portfolio theory - Wikipedia

   en.wikipedia.org/wiki/Modern_portfolio_theory

   The MPT is a mean-variance theory, and it compares the expected (mean) return of a portfolio with the standard deviation of the same portfolio. The image shows expected return on the vertical axis, and the standard deviation on the horizontal axis (volatility). Volatility is described by standard deviation and it serves as a measure of risk. [7]

5. Markowitz model - Wikipedia

   en.wikipedia.org/wiki/Markowitz_model

   The Capital Market Line says that the return from a portfolio is the risk-free rate plus risk premium. Risk premium is the product of the market price of risk and the quantity of risk, and the risk is the standard deviation of the portfolio. The CML equation is : R P = I RF + (R M – I RF)σ P /σ M. where, R P = expected return of portfolio

6. Rate of return on a portfolio - Wikipedia

   en.wikipedia.org/wiki/Rate_of_return_on_a_portfolio

   The rate of return on a portfolio can be calculated indirectly as the weighted average rate of return on the various assets within the portfolio. [3] The weights are proportional to the value of the assets within the portfolio, to take into account what portion of the portfolio each individual return represents in calculating the contribution of that asset to the return on the portfolio.

7. Capital asset pricing model - Wikipedia

   en.wikipedia.org/wiki/Capital_asset_pricing_model

   An estimation of the CAPM and the security market line (purple) for the Dow Jones Industrial Average over 3 years for monthly data.. In finance, the capital asset pricing model (CAPM) is a model used to determine a theoretically appropriate required rate of return of an asset, to make decisions about adding assets to a well-diversified portfolio.