How is the probability and expected return calculated on a single stock?© BrainMass Inc. brainmass.com June 3, 2020, 6:56 pm ad1c9bdddf
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Expected return is the mean (average) of the probability distribution of the returns. There are various methods to calculate the expected return. Let us look at the following example.
Returns from a stock (%) Probability
solution describes how to calculate probability and expected return on a single stock.