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Expected return
The expected return on a risky asset, given a probability distribution for the possible rate_of_return. Expected return equals some risk-free rate (generally the prevailing U.S. Treasury note or bond_rating) 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_bonds) multiplied by the asset's beta. The conditional expected return varies through time as a function of current market information.
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