Respuesta :
Here, in this question Expected return = 0.5(16) + 0.5(4) = 10%.
How do you calculate the expected return of a portfolio with volatility?
The predicted return is calculated by using multiplying the weight of each asset with the aid of its expected return. Then add the values for each investment to get the complete anticipated return for your portfolio. Hence, the formula: Expected Portfolio Return = (Asset 1 Weight x Expected Return) + (Asset 2 Weight x Expected Return
When calculating the expected fee of return on a stock portfolio the usage of a weighted common The weights are based totally on the?
The fundamental predicted return method entails multiplying every asset's weight in the portfolio by means of its predicted return, then including all these figures together. In other words, a portfolio's predicted return is the weighted common of its person components' returns.
Learn more about expected return here:
