The expected return of a stock can be calculated using a probability distribution of potential returns, such as a 30% probability of a 12% return, a 50% probability of a 7% return, and a 20% probability of a -5% return.

Authors

• Person: Not available Organization: Pressbooks
  Chapter 8 – Risk and Return – Fundamentals of Finance

Sources

• Chapter 8 – Risk and Return – Fundamentals of Finance pressbooks.pub Pressbooks via serper

Referenced by nodes (3)

• stocks concept
• probability distribution concept
• expected return concept