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Expected value |
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Expected value1. The mathematical expected value of a random variable. Equals the sum (or integral) of the values that are possible for it, each multiplied by its probability. 2. What people think a variable is going to be. In general, the expectation in this second sense may be more important than the first for determining behavior on a market, such as the exchange market.Similar MatchesMaximum expected return criterion (MERC)Maximum expected return criterion (MERC)Standard that one choose the asset with the highest anticipated return. Expected return beta relationshipExpected return beta relationshipImplication of the CAPM that security risk premiums will be proportional to beta. Expected dividend yieldExpected dividend yieldTotal amount of dividends received during the life of a futures contract or total dividends received for holding a particular stock one year. See: Current yield. Expected future returnExpected future returnThe return that is expected to be earned on an asset in the future. Also called the expected return. Expected Spot RateExpected Spot RateThe exchange rate between two currencies that is anticipated to prevail in the spot market on a given future date. It differs from the current spot rate primarily by the extent to which inflation expectations in the two currencies differ. Further SuggestionsExpected value of perfect informationExpected future cash flows Expected return on investment |
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