Expected Return Calculator: Introduction
The Expected Return Calculator calculates the Expected
Return, Variance, Standard Deviation, Covariance, and Correlation Coefficient for a
probability distribution of asset returns.
- Input Fields - Enter the Probability, Return on Stock 1, and Return on Stock2 for each state in these fields. The sum of the probabilities must equal 100%.
- Expected Return Fields - The Expected Returns on Stocks 1 and 2 are displayed here.
- Variance Fields - The Variance of the returns on Stocks 1 and 2 are displayed here.
- Standard Deviation Fields - The Standard Deviation of the returns on Stocks 1 and 2 are displayed here.
- Covariance Field - The Covariance between the returns on Stocks 1 and 2 is displayed here.
- Correlation Coefficient Field - The Correlation Coefficient between the returns on Stocks 1 and 2 is displayed here.
- Buttons - Press the Calculate Button to
calculate the Expected Return, Variance, etc. for Assets 1 and 2.
Press the Clear Button to reset the calculator.
Now you are ready to use the Expected Return Calculator.
© 2002 - 2010 by Mark A. Lane, Ph.D.