What is the difference between assets expected return and its actual return? Why are expected returns so

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What is the difference between assets expected return and its actual return? Why are expected returns so important to investors and managers?
Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
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Introduction to Corporate Finance

ISBN: 978-0324657937

2nd edition

Authors: Scott B. Smart, William L Megginson

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