The expected return is the statistical mean of the daily return surveys for the last five years. It expresses the probability of a future return on the basis of past performance. The result is therefore not a certainty, but a guideline. Since the expected rate of return is a forecast based on past results, it changes with every update.
The VaR (Value at Risk) expresses the maximum loss that the portfolio can generate with an approximation of 95% on the next day, in the next month, and in the next 3 months. In this way, you can weigh up whether the risk to which your portfolio is exposed corresponds to the maximum loss you can take.
Again, we’d like to point out that the standard deviation measures volatility: the higher the number, the more the asset value is subject to both positive and negative fluctuations in changing market conditions.
The key figure evaluates the ability of a security or a portfolio of securities to outperform the return on a risk-free investment.
In this way, it can be assessed whether it is worthwhile to “accept the risk”, which is also known as the “risk premium”. Since it is positive in this case, it is worthwhile, since we have an expected return 0.12 Points higher than a money market investment for each risk point represented by the volatility - the "standard deviation" (where we use a security classified as zero risk as a benchmark).
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