Question

what is meant by average profit value based on expected rate of return?​

Answer 1

Explanation:

Hay Guys!!!!

The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these results.

Hope it may help you

Answer 2

ERR

Explanation:

The expected rate of return also known as the normal rate of return which is Hoped to be achieved or try to achieve by an investor.

• Average profit also based on average rate of return.

Average rate of return =  (Total Average cash flow / Total investment) x 100

Sometimes the expected rate of return also depends on the industrial rate of return.

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