The expected return on a risky asset can be estimated using the formula E(Ri)=Rf+βi(E(Rm)−Rf), where E(Ri) is the expected return, Rf is the risk-free rate, βi is the asset's beta, and E(Rm) is the expected market return.

Authors

• Person: Not available Organization: CAUL
  Topic 2: The Risk and Return Trade Off in Financial Decision Making

Sources

• Topic 2: The Risk and Return Trade Off in Financial Decision Making oercollective.caul.edu.au CAUL via serper

Referenced by nodes (1)

• risk-free rate concept