Which of the following 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 expected return is calculated as the average of the possible returns, each weighted by its respective probability of occurrence. This metric is used to estimate the return on an investment, taking into account all possible outcomes.

Which of the Following Is the Average of the Possible