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 |
![E[R]=\sum _{{i=1}}^{{n}}R_{{i}}P_{{i}}](https://wikimedia.org/api/rest_v1/media/math/render/svg/6f4b8857cbef2f928b9abcdfe49e8cf8b85ca178)
