Expected value calculates average future investment returns based on outcome probabilities. In finance, expected value guides portfolio construction and when to sell assets with lower future value.

Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author. What if I say that starting a business is unnatural? The venture is always risky, and we’re ...

None of us has a crystal ball that allows us to accurately project the price of a stock in the future. However, if we make a few basic assumptions, it is possible to determine the price a stock should ...

Peter Gratton, Ph.D., is a New Orleans-based editor and professor with over 20 years of experience in investing, risk management, and public policy. Peter began covering markets at Multex (Reuters) ...

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in. The content of this article is provided for information ...