The expected return of a portfolio is the anticipated amount of returns that a portfolio may generate, whereas the standard deviation of a portfolio measures the amount that the returns deviate from its mean.
The expected return of a portfolio is calculated by multiplying the weight of each asset by its expected return and adding the values for each investment.
An investor uses an expected return to forecast, and standard deviation to discover what is performing well and what is not.
Expected return is not absolute, as it is a projection and not a realized return.
The expected return of a portfolio is the anticipated amount of returns that a portfolio may generate, whereas the standard deviation of a portfolio measures the amount that the returns deviate from its mean.
The expected return of a portfolio is calculated by multiplying the weight of each asset by its expected return and adding the values for each investment.
An investor uses an expected return to forecast, and standard deviation to discover what is performing well and what is not.
Expected return is not absolute, as it is a projection and not a realized return.