Difference between revisions of "Expected return"

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:= .025 + .025 - .025
 
:= .025 + .025 - .025
 
:= 2.5%
 
:= 2.5%
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==See Also==
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* [[Essay:Invest in tangibles]] - [[:Category:Survivalism|Economic preparedness]]
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* [[Inflation]] versus [[Interest rate]]s / [[Rate of return]]-[[Expected return]]
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* [[Self-directed IRA]] and [[IRA]], [[401(k)]], Roth IRA, [[403(b)]], [[Retirement]], [[Social security]]
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----
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* [[:Category:Banksters|Banksters]]: [[MF Global]], [[Goldman Sachs]]
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* [[National debt]]: [[Debt Ceiling]]-[[Deficit spending]] and the [[Federal Reserve System]]'s [[Ponzi scheme]] of [[Quantitative easing]]-[[Debt monetization]] [[devaluation]] of [[Fiat currency]] through [[Money supply]]-[[Treasury bill]]s bought mostly by [[China]] and [[Japan]]
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[[File:Shovelready.jpg|right|250px]]
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* [[Globalization]], [[Globalism]], [[International Monetary Fund]], [[World Bank]]
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* [[John Maynard Keynes]] [[liberal]] [[Keynesian economics]] and [[Fabian Socialism|Fabian Socialist]] influence on [[Barack Obama]]
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* '''[[Big government | Big Government]]''': [[Liberal values|Liberal]] [[ObamaCare]]-[[Common Core]]-[[Social Security]] [[Welfare state]] leads to [[Nanny state]], leads to [[Gun control]], [[Militarization of police]], [[Asset forfeiture]] and Domestic [[mass surveillance]] of law-abiding [[citizen]]s via the '''[[Police state]]''': [[Globalist]]-[[United Nations]]-[[Statist]]-[[Socialist]]-[[National Socialist]]-[[Communist]]
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'''Contrast with:'''
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* [[Ludwig von Mises]]' [[conservative]] [[libertarian]] [[Austrian economics]] and [[Fiscal conservatism]] -[[Capitalist]] [[Conservative economic policies]] of [[Ron Paul]]
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* [[Gold standard]] and [[precious metal]]s
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* [[Essay:Invest in tangibles|Invest in tangibles]] for [[:Category:Survivalism|Economic preparedness]]
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* '''[[Limited government]]''' implies: [[Conservative values]]/[[Traditional values]] - [[Modern conservatism]] - [[Preparedness | Modern preparedness]] are the original [[American]] [[Patriot]] [[Founding Fathers]]' values
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* [[Modern preparedness]]: "[[if times get tough, or even if then don't]]", [[Debt is financial cancer]], [[Tax is theft]], [[Renewable energy]], [[Financial security]], [[You are in control of your life]]
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** [[Invest in tangibles]] - [[Rural]] [[farm]] [[land]], [[Tools]], [[Food storage]], [[Precious Metals]], [[Ammunition | Copper-jacketed lead]] and [[Firearms]]
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** [[Agriculture]]-[[Permaculture]]: [[Growing your own food]], [[Food and water storage]]
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==References==
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{{reflist|2}}
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Revision as of 03:00, December 10, 2014

The expected return is the average of the possible returns, each weighted by its probability.

For example, if an investment has a 50% chance of earning a 5% return, a 25% chance of earning 10% and a 25% chance of losing 10%, then its expected return would be calculated as follows:

Expected Return = (0.5) (0.05) + (0.25) (0.1) + (0.25) (-0.1)
= .025 + .025 - .025
= 2.5%

See Also


Shovelready.jpg


Contrast with:


References