- Expected Value
Anticipated value for a given investment. In statistics and probability analysis, expected value is calculated by multiplying each of the possible outcomes by the likelihood that each outcome will occur, and summing all of those values. By calculating expected values, investors can choose the scenario that is most likely to give them their desired outcome.
Scenario analysis is one technique for calculating the expected value of an investment opportunity. It uses estimated probabilities with multivariate models, to examine possible outcomes for a proposed investment. Scenario analysis also helps investors determine whether they are taking on an appropriate level of risk, given the likely outcome of the investment.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
expected value — A net present value of all the various possible outcomes at vesting or exercise of equity linked payments. Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 … Law dictionary
Expected value — This article is about the term used in probability theory and statistics. For other uses, see Expected value (disambiguation). In probability theory, the expected value (or expectation, or mathematical expectation, or mean, or the first moment)… … Wikipedia
expected value — The weighted average of a probability distribution. Also known as the mean value. Bloomberg Financial Dictionary * * * expected value expected value ➔ value1 * * * expected value UK US noun [U] ► ECONOMICS, FINANCE the probable value of something … Financial and business terms
Expected value — The weighted average of a probability distribution. The New York Times Financial Glossary * * * expected value expected value ➔ value1 * * * expected value UK US noun [U] ► ECONOMICS, FINANCE the probable value of something, calculated as the… … Financial and business terms
expected value — laukiamoji vertė statusas T sritis fizika atitikmenys: angl. expectation value; expected value vok. erwartender Wert, m; Erwartungswert, m rus. математическое ожидание, n; ожидаемое значение, n pranc. espérance mathématique, f … Fizikos terminų žodynas
expected value — tikėtinoji vertė statusas T sritis automatika atitikmenys: angl. expected value vok. Erwartungswert, m rus. ожидаемое значение, n pranc. valeur attendue, f … Automatikos terminų žodynas
expected value — EV A statistical measure of central value often used in decision making. It is the sum of the possible outcomes in quantitative terms, such as units of output or sales, weights, or volumes, multiplied by the respective probabilities of these… … Big dictionary of business and management
expected value — EV In decision making, the sum of the products of the outcomes in quantitative terms, such as units of output or sales, weights, or volumes, and the probabilities of these outcomes arising. Compare: expected monetary value … Accounting dictionary
expected value — EV The quantifiable, expected result of a course of action whose outcome is uncertain. Expected values are often used in *decision theory, and are calculated by multiplying the expected outcomes of decisions by the *probabilities of their… … Auditor's dictionary
expected value — noun Date: 1915 1. the sum of the values of a random variable with each value multiplied by its probability of occurrence 2. the integral of the product of a probability density function of a continuous random variable and the random variable… … New Collegiate Dictionary