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Expected future return

Business Expectations hypothesisExpected return

EXPECTED FUTURE RETURN - The return that is expected to be earned on an asset in the future. Also calle...
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Asset Class Performance: The historical and expected future return and volatility of the basket of securities that make up a particular asset class. These measures are used primarily for comparing asset classes and predicting future returns.

Are based on historical performance characteristics, which include the expected future return, the expected future volatility (risk) of the return, and how the returns of assets classes perform relative to each other.
Assumption (Real Estate): ...

Higher average historical and expected future returns are associated with higher compensatable risks.

Projected future cash flows associated with an asset.
Expected future return
The return that is expected to be earned on an asset in the future. Also called the expected return.
Expected return ...

The predictions for asset class performance are based on historical performance characteristics, which include the expected future return, the expected future volatility (risk) of the return, ...

The higher the risk the higher the discount rate. Such calculations are used to compare the current cost of a project or investment with the current worth of expected future returns and hence its attractiveness.

See also: Net present value, Risky asset, Expected return, Risk premium, Probability distribution

Business Expectations hypothesisExpected return

 
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