Expected return   The expected return on a risky asset, given a
probability distribution for the possible rates of return.
Expected return equals some risk-free rate (generally the
prevailing U.S. Treasury note or bond rate) plus a risk premium
(the difference between the historic market return, based upon a
well diversified index such as the S&P 500 and the historic U.S.
Treasury bond) multiplied by the asset's beta. The conditional
expected return varies through time as a function of current
market information.  Investing Essentials   Term of the Day
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