expected return means: Expected return for a high-risk investment Asset, given the probability Distribution of the rates possible return. Expected return equals Some risk-free rate, generally the current U.S. Treasury Note Or bond rate plus risk premium The difference between the historical market and the current one Return, calculated using a broad index Such as the SP 500 or the historical Multiplier the U.S. Treasury Bond by the Asset beta. Beta. Through time, as a function current market information. (in Stock Market Dictionary)