Exante Average Rate of Return

(redirected from Ex-Ante Average Return Rates)

Exante Average Rate of Return

An estimated, as opposed to actual, average rate of return over the life of an investment. In cases in which there was uncertainty as to the average rate of return before the investment was made, one calculates the exante average rate of return to gauge how much one may expect to make from it. This may inform one's investment decisions. One may compare the exante average to the expost average rate of return after the investment is complete to determine how accurate the estimates were.