


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.
