Latin for a situation or fact that is taken into consideration “before the event”. In other words, ex-ante involves an analysis of relevant facts available before an event in order to reach a specific conclusion. If a prediction is being made or figured out, the process is said to be “ex ante”.
In finance, ex-ante is used describe the potential outcomes of an action or potential returns of a specific security, investment, or company (ex-ante return). In relation to a fund or portfolio, the ex-ante return denotes the expected return of the fund or portfolio.
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