Series 79: 3.5.5.1. Expected Rate Of Return

3.5.5.1. Expected Rate of Return

The “expected” in “expected rate of return” can mean several things. Let’s say you decide to evaluate an investment based on an expected rate of return of 8% a year. This could be for any or all of the following reasons:

• Other investments with a comparable level of risk tend to return about 8%, so if this investment returns less than that it may not be worth your time.

• You would