Expected Rate of Return Calculator
Expected Rate of Return: %
Formula: Expected Rate of Return = (Investment Return / Initial Investment) × 100
Expected Rate of Return Calculator | ||
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Parameter | Description | Example Value |
Possible Return 1 | The value of the first possible return. | 10% |
Probability 1 | The probability of the first possible return occurring. | 0.4 |
Possible Return 2 | The value of the second possible return. | 5% |
Probability 2 | The probability of the second possible return occurring. | 0.6 |
Expected Rate of Return | The weighted average of all possible returns. Formula: (Possible Return 1 * Probability 1) + (Possible Return 2 * Probability 2) |
7% |