Which of the following is the best definition of expected return?
A) Percentage of a portfolio's total value in a particular asset.
B) Group of assets such as stocks and bonds held by an investor.
C) The difference between the return on a risky investment and a risk-free investment
D) Return on a risky asset expected in the future.
E) Equation of the SML showing the relationship between expected return and beta.

Question

Quizplus · Accepted Answer

Expected return is the average return an investor anticipates to receive from an investment, which is risky, over a period of time. It is a projection based on historical data and analysis of the asset's potential performance.

Which of the Following Is the Best Definition of Expected