Expost average rate of return

(redirected from Ex Post Average Returns)

Expost average rate of return

The historical mean percentage an asset has yielded.

Expost Average Rate of Return

A calculation of the actual, as opposed to estimated, average rate of return over the life of an investment. In cases where there was uncertainty as to the average rate of return before the investment was made, one calculates the expost average rate of return after the investment is complete to determine how closely the investment matched estimates. The calculation of the expost average rate of return is fairly straightforward: one takes the total return on an investment and divides by the number of years in the life of the investment. It is important to note that these are the actual figures rather than estimates. See also: Exante average rate of return.