Expected Return Calculator

Weighted-average expected return.

Expected return (%) 4

Step-by-step with your numbers:

1. Values used:

2. Return 1 = 10 %

3. Probability 1 = 0.6

4. Return 2 = -5 %

5. Probability 2 = 0.4

6. Expected return = 4%

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Probability-weighted average of possible returns.

FAQ

More scenarios?

Add more terms — probabilities should sum to ~1.