in security analysis, expected value, or average, of all the likely returns of investments comprising a portfolio; in capital budgeting, mean value of the probability distribution of possible returns.
in security analysis, expected value, or mean, of all the likely returns of investments comprising a portfolio; in capital budgeting, mean value of the probability distribution of possible returns. The portfolio approach to the analysis of investments aims at quantifying the relationship between risk and return. It assumes that while investors have different risk-value preferences, rational investors will always seek the maximum rate of return for every level of acceptable risk. It is the mean, or expected, return that an investor attempts to maximize at each level of risk. Also called expected return.
