The expected rate of return of an investment _____. a. is the median value of the probability distribution of possible returns b. is the mode value of the probability distribution of possible returns c. equals the required rate of return for the investment d. equals one of the possible rates of return for that investment e. is the mean value of the probability distribution of possible returns

Question

15-03-2018
Business

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The expected rate of return of an investment _____. a. is the median value of the probability distribution of possible returns b. is the mode value of the probability distribution of possible returns c. equals the required rate of return for the investment d. equals one of the possible rates of return for that investment e. is the mean value of the probability distribution of possible returns

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MrsTriplet MrsTriplet · Answer 1 · 2018-03-26T17:49:22+02:00

The expected rate of return of an investment is the mean value of the probability distribution of possible returns.

The rate of return is a profit or loss on an investment over a measurable period of time. This is shown as a percentage of the investments cost. Rate of return on an investment is is also known as an ROI, to find you'll divide the return/profit on the investment by the cost and you'll be able to see if there was a gain or a loss.