Why is expected return considered forward-looking? What are the challenges for practitioners to utilize expected return?

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Why is expected return considered “forward-looking”? What are the challenges for practitioners to utilize expected return?

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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Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

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