# Yahoo How to calculate expected return on equity Search

• #### How to Calculate Expected Return, Variance, Standard ...

· 3 days ago

How to calculate return on equity? Return on Equity (ROE) is a metric used to estimate the financial performance of a company in terms of how well a it uses its net assets (equity equals the company's assets minus its debt/liabilities). It is calculated as the company net income (profit) relative to the net value of its assets, or equity.

• #### Return on Equity Calculator - ROE formula & calculation

· 1 days ago

Understand the expected rate of return formula. Like many formulas, the expected rate of return formula requires a few "givens" in order to solve for the answer. The "givens" in this formula are the probabilities of different outcomes and what those outcomes will return. The formula is the following.

• #### How to Calculate Expected Rate of Return | Sapling.com

· 7 days ago

In the case of stocks, expected rate of return (ERR) is a formula used to forecast the future return on investment from a stock purchase -- which includes income from both equity and dividend growth. How to Calculate Expected Return of a Stock. To calculate the ERR, you first add 1 to the decimal equivalent of the expected growth rate (R) and ...

• #### Return on Equity (ROE) | Formula | Example | Ratio Calculation

· 3 days ago

11/22/2016 · The Variables in the Equation. The variables used in the CAPM equation are: Expected return on an asset (r a), the value to be calculated; Risk-free rate (r f), the interest rate available from a risk-free security, such as the 13-week U.S. Treasury bill.No instrument is completely without some risk, including the T-bill, which is subject to inflation risk.