How do you calculate the expected rate of return?

Answer

A simple way to calculate the expected rate of return on an investment for a single period is by subtracting the initial investment from the final value of the investment and dividing it with the initial investment. There also also other formulas to calculate expected rate of return on a multiple period average. Rate of return can be defined as the ratio of money gained or lost basing on an investment.
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Ask.com Answer for: how to calculate expected rate of return
How to Calculate Expected Rate of Return
When it comes to making financial investments, investors want to know how much money they will make off the principal they invested. That might seem like a tall order: investors are somewhat at the mercy of the marketplace. However, by calculating the... More »
Difficulty: Moderately Easy
Source: www.ehow.com
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