Expected Future Return

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Expected future return

The return that is expected to be earned on an asset in the future. Also called the expected return.

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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No references found			] in a continuous time environment involves finding where the slope of the value function (the function describing expected future returns as a function of current cash) is equal to one (see Harrison 1985). Free cash flow and takeover threats: an experimental study by Oprea, Ryan / Southern Economic Journal Since firms go bankrupt typically due to inability to pay debt, the major factor in determining whether a firm will go bankrupt is the availability of cash, while expected future returns should not have a significant effect on the probability of bankruptcy. The importance of cash-flow news for financially distressed firms by Eisdorfer, Assaf / Financial Management When considering a range of scenarios, the insurance enterprise should consider historical investment returns, the volatility" of those returns, and expected future returns, as applicable. Official releases: SOP 03-1 ... ethics interpretations and rulings by Journal of Accountancy			Exercising the Option exhaust price Exhaustion Exhaustion Gap ExIm Bank Existencias Existing Home Sales Exit Fee Exit Strategy Exogenous Exogenous Uncertainty Exogenous Variable Exordium Clause Exotic Option Expansion Expansion monetaria expansion option Expatriate Expectations Hypothesis Expectations Hypothesis Theories Expectations Index Expectations Theory of Forward Exchange Rates Expectativas inflacionarias Expected Dividend Yield Expected Future Cash Flows Expected Future Return Expected Rate of Inflation Expected Rate of Return Expected Return Expected return on investment Expected Return-Beta Relationship Expected Spot Rate Expected Value Expected Value of Perfect Information Expedited Funds Availability Act Expense Account expense ratio expense stop Expensed expenses Expenses of Sale Expensing Expensive Experian Experience Rating Expert system Expiracion Expiration Expiration Cycle Expiration Date Expiration Effect			Expected Data Transfer Length Expected Date of Arrival Expected Date of Confinement expected date of delivery expected date of delivery expected date of delivery Expected Date/Data of Supply Expected Default Frequency Expected Departure Expected Description Length Expected dividend yield Expected Dividend Yields Expected Dose-Volume Histogram Expected Downtime Heuristic Expected Downtime Heuristic for Unbalanced Systems Expected Energy not Produced Expected Energy Not Supplied Expected Exceedence Expected Fade Duration Expected Family Contribution Expected Fractional Damage expected frequency expected frequency expected frequency expected frequency Expected Further Clearance Expected Future Cash Flow Expected future cash flows Expected Future Profitability of Investment Expected Future Return Expected Future Returns Expected Graduation Date Expected Hop Count Expected Horizontal Error expected increase in value Expected Inflation Expected Inflation Rate Expected Inflation Rates Expected Internal Rate of Return Expected Introdiction Concentration Expected Level of Achievement Expected life span Expected life span Expected life span Expected life span Expected Lifetime Reproductive Success Expected Log-Likelihood Function Expected Loss Expected Marginal Seat Revenue Expected Mode Augumentation Expected monetary value Expected monetary value Expected monetary value Expected monetary value Expected Mutual Information Measure Expected Net Present Value Expected Net Profit Expected Net Receivables Expected number Expected number

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