Expected Return Calculator



Expected Return Calculator helps calculating the Expected Return.

What is Expected Return?

Expected Return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR).

The expected return is a tool used to determine whether an investment has a positive or negative average net outcome.

The sum is calculated as the expected value (EV) of an investment given its potential returns in different scenarios

The Formula of Expected Return

The basic formula of the Expected Return is as follows:

Expected Return = Σp_i x R_i = p₁ x R₁ + p₂ x R₂ + ... p_n x R_n

Where:

p_i = probability state i will occur

R_i = the Return the risky asset will yield if state i will occurs

​

The Risky Asset Cost $

The Risky Asset Cash Flows:

Insert all outcomes of the risky asset:

A % chance of of receiving $

A % chance of of receiving $

A % chance of of receiving $

A % chance of of receiving $

A % chance of of receiving $