The "Expected Return" is a financial concept that represents the anticipated profit or loss from an investment over a specific period. It is calculated by taking the weighted average of all possible returns, where each return is multiplied by its probability of occurring. This helps investors gauge the potential performance of their investments. Investors often use the expected return to compare different investment options, such as stocks, bonds, or real estate. By understanding the expected return, individuals can make more informed decisions about where to allocate their resources, balancing potential risks and rewards in their portfolios.