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Questions and Answers
What is the formula for calculating expected return?
What is the formula for calculating expected return?
Expected return = (Return 1 * Probability 1) + (Return 2 * Probability 2) + ... + (Return n * Probability n)
Define risk in the context of investments.
Define risk in the context of investments.
Risk is the variability of returns from those that are expected.
How is return typically expressed?
How is return typically expressed?
Return is usually expressed as a percentage of the beginning market price of the investment.
