This is the average of the possible returns weighted by the likelihood of those returns occurring.
A) efficient return
B) expected return
C) market return
D) required return

Question

Quizplus · Accepted Answer

The definition given in the question matches with the expected return, which is the average of all possible returns weighted by their probabilities. Option A, efficient return, refers to the maximum return for a given level of risk. Option C, market return, is the return earned by the overall market or a specific market index. Option D, required return, is the return required by investors to invest in a particular security or investment.

This Is the Average of the Possible Returns Weighted by the Likelihood