Question: What is ex ante and ex post investment?

Ex-ante investment refers to the desired investment or planned investment during the period of one year. This is the investment expenditure which is intended to be made in the economy during the period of one year. Ex-post investment refers to the actual investment in the economy during the period of one year.

What is the meaning of ex-ante and ex-post?

Ex-ante and Ex-post are Latin terminologies used in predicting the returns of a security. … On the other hand, ex-post means “after the event,” while ex-ante means “before the event.” Ex-post is backward-looking, and it looks at results after they have already occurred.

What is ex-ante and ex-post risk?

Ex-post risk refers to the risks experienced by a portfolio in the past (ex-post = after the fact). … A related but opposite term is ex-ante risk, which refers to the future projected risks of a portfolio (ex-ante = before the event).

How do you calculate ex-ante?

Ex ante variance calculation:

  1. The expected return is subtracted from the return within each state of nature; this difference is then squared.
  2. Each squared difference is multiplied by the probability of the state of nature.
  3. These weighted squared terms are then summed together.

What is ex post investment?

Ex-post investment refers to the actual investment in the economy during the period of one year. This aspect of investment is considered in the calculation of National Income. Ex-post savings refers to the actual savings in the economy from the given level of income during the period of one year.

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What is represented when the ex ante return varies from the ex post?

Usually, most investors forecast the expected returns of a security based on the historical returns of the security. … Ex-post returns vary from ex-ante returns due to the fact that the former represents the actual yields attributable to investors rather than the estimated returns.

What is ex ante oversight?

While oversight occurs ex post, after. the agency has implemented a policy, statutory controls are established ex ante, before the agency acts.

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