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Expected Value

   Also found in: Dictionary/thesaurus, Medical, Legal, Acronyms, Encyclopedia, Wikipedia 0.01 sec.
Expected value
The weighted average of a probability distribution. Also known as the mean value.

Expected Return
The return on an investment as estimated by an asset pricing model. It is calculated by taking the average of the probability distribution of all possible returns. For example, a model might state that an investment has a 10% chance of a 100% return and a 90% chance of a 50% return. The expected return is calculated as:

Expected Return = 0.1(1) + 0.9(0.5) = 0.55 = 55%.

It is important to note that there is no guarantee that the expected rate of return and the actual return will be the same. See also: Abnormal return.


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Lottery Statistics With regards to the lottery, the skeptic proceeds to apply this theorem but never specifies what the expected value should be nor the number of drawings required.
2 percentage points from that of the month prior, but managed to stay within the expected value.
pounds 18M EXPECTED VALUE OF HOUSE SALES TO TENANTS OVER NEXT TWO YEARS 1,500 TARGET FOR NEW SOCIAL AND AFFORDABLE HOMES THIS YEAR
 
 
 
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