What is the term for the probabilistic expectation of a return on an investment? Option: Risk-Free Rate, Market Return, Expected Return, Guaranteed Return

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What is the term for the probabilistic expectation of a return on an investment?

Risk-Free Rate

Market Return

Expected Return

Guaranteed Return

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What does the acronym RRR stand for in the context of trading and investment evaluation?

Relative Risk Ratio

Risk Reduction Rate

Reward to Risk Ratio

Required Rate of Return

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How is the expected return of a portfolio calculated?

E(RP) = (R1 + R2 + R3 + ... + Rn) / N

E(RP) = W1/R1 + W2/R2 + W3/R3 + ... + Wn/Rn

E(RP) = (W1 + W2 + W3 + ... + Wn) * (R1 + R2 + R3 + ... + Rn)

E(RP) = W1R1 + W2R2 + W3R3 + ———– + WnRn

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In the context of investment returns, what does CAGR represent?

The risk associated with the investment

The initial investment amount

The total profit earned

The average annual growth rate of the investment

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What does ROE stand for in financial analysis?

"Rate of Exchange"

"Revenue on Earnings"

"Return on Equity"

"Risk of Expenditure"

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What does CAGR stand for in the context of investment returns?

Capital Asset Growth Rate

Consistent Annual Return

Current Annual Gain Ratio

Compounded Annual Growth Rate