Which term refers to the expected future returns in financial models?

The term that refers to the expected future returns in financial models is the Ex Ante Pricing Model. This model is focused on predictions and expectations regarding future outcomes, particularly future returns based on available information. This anticipatory approach considers various factors and is useful for investors seeking to make informed decisions based on potential scenarios and expected performance.

Ex Post refers to analysis or returns that are based on historical data; thus, it looks backward rather than forward. The Capital Asset Pricing Model (CAPM) is a specific example of a model that can utilize both historical data and current assumptions about expected returns, but the model itself is not synonymous with expected returns. The Beta Coefficient, which measures the volatility or systematic risk of a security in comparison to the market as a whole, does not directly represent expected future returns but rather assesses risk relative to market movements.

Therefore, the Ex Ante Pricing Model is distinct in its focus on forecasting future returns, making it the correct term in this context.