I have a very stupid question to ask, yet it seems I keep doing the same mistake and I cant find an answer. When we calculate the expected return or the actual return on an investment, why do we always use D1 rather than D0?For example, in one of the exercises in the curriculum, they have asked us to calculated the expected return on an investment and the investor just received a dividend, plus had 4 quarterly dividend to come in the coming year. Ok, I get that the expected return is based on the expectation, but the dividend he has just received is still part of his return, so I am not sure why that particular dividend wasnâ€™t included in the return calculation.

Can someone help me?