There's money to be made in accurately estimating expected future total returns in the stock market. To understand how to do this for stocks, we have to break total return down into its components.

One simple but powerful method investors can use to assess the risk and reward of a stock portfolio is using the Capital Asset Pricing Model, or CAPM, model for expected returns.

Key Takeaways To calculate a portfolio's expected return, you need to compute the expected return of each of your holdings and its weight.

Whether you’re calculating the expected return of an individual stock or an entire portfolio, the formula depends on getting your assumptions right.

Many stock investments, in particular, are designed to produce a combination of income and capital gains. Total return combines these two types of investment returns into a single metric.

How to value the stock and bond markets and project future returns. My future return assumptions for stocks, bonds, and gold for 2020 and beyond.

To calculate the beta of Apple Inc. (NASDAQ: AAPL) as a specific example using the covariance/variance method, you would take the covariance of the expected return on AAPL stock to the average ...

"Abnormal returns" is an important concept in academic finance, as well as in the investment management industry.Let's go over how to calculate an abnormal return for a stock using stock prices ...

Whether you’re calculating the expected return of an individual stock or an entire portfolio, the formula depends on getting your assumptions right.

Whether you’re calculating the expected return of an individual stock or an entire portfolio, the formula depends on getting your assumptions right.