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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 MatchesExpected value of perfect informationExpected value of perfect informationThe expected value if the future uncertain outcomes could be known minus the expected value with no additional information. 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. Expected return on investmentExpected return on investmentThe return one can expect to earn on an investment. See: Capital asset pricing model. Expected return beta relationshipExpected return beta relationshipImplication of the CAPM that security risk premiums will be proportional to beta. Further SuggestionsExpected future cash flowsMaximum expected return criterion (MERC) Expected dividend yield |
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