Expected Return Calculator
 State Probability Stock 1 Stock 2 1 % % % 2 % % % 3 % % % 4 % % % 5 % % % Expected Return: % % Variance: Standard Deviation: % % Covariance: Correlation:

The Expected Return Calculator calculates the Expected Return, Variance, Standard Deviation, Covariance, and Correlation Coefficient for a probability distribution of asset returns.

1.     Input Fields - Enter the Probability, Return on Stock 1, and Return on Stock2 for each state in these fields. The sum of the probabilities must equal 100%.

2.     Expected Return Fields - The Expected Returns on Stocks 1 and 2 are displayed here.

3.     Variance Fields - The Variance of the returns on Stocks 1 and 2 are displayed here.

4.     Standard Deviation Fields - The Standard Deviation of the returns on Stocks 1 and 2 are displayed here.

5.     Covariance Field - The Covariance between the returns on Stocks 1 and 2 is displayed here.

6.     Correlation Coefficient Field - The Correlation Coefficient between the returns on Stocks 1 and 2 is displayed here.

7.     Buttons - Press the Calculate Button to calculate the Expected Return, Variance, etc. for Assets 1 and 2. Press the Clear Button to reset the calculator.

 Expected Return: where Ri is the rate of return achieved at ith outcome, pi is the probability of ith outcome, and n is the number of possible outcomes Standard Deviation: where ri is the rate of return achieved at ith outcome, ERR is the expected rate of return, pi is the probability of ith outcome, and n is the number of possible outcomes
copy right 2002 - 2019 by Mark A. Lane, Ph.D.