## Term Glossary

### Expected Return

Expected rate of return represents the mean of a probabilty distribution of possible returns on the asset. For discrete return distributions it is a probability-weighted sum of all return realizations: $$E(r)=\sum\limits _{i=1}^{\infty}r_{i}\, P(r=r_{i})$$ $$\sum\limits _{i=1}^{\infty}P(r=r_{i})=1$$

$r$
asset return
$P(r=r_i)$
probability of i-th return realization
For continous return distributions, expected return is an integral measure: $$E(r)=\int_{-\infty}^\infty r f(r)\, \mathrm{d}r$$
$r$
asset return
$f(r)$
probability density function of return distribution

###### Function Reference
portfolio_expectedReturn, position_expectedReturn