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Discuss the concept of Expected Rate of Return. Think about the expected rate of return in terms of stocks and discuss stand-alone risk, market conditions.

  1. Discuss the concept of Expected Rate of Return.
  2. Think about the expected rate of return in terms of stocks and discuss stand-alone risk, market conditions.
  3. What is the probability of each of these states coming about i.e good return, average return and bad return.

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The concept of Expected Rate of Return ERR is a financial metric used to estimate the potential return an investor can expect to earn from an investme... blur-text-image

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