A portfolio's expected return is calculated based on the weighted average of the expected returns of its constituent assets, such as a portfolio with 60% allocation in Stock A (8% expected return) and 40% allocation in Stock B (12% expected return).

Authors

• Person: Not available Organization: Pressbooks
  Chapter 8 – Risk and Return – Fundamentals of Finance

Sources

• Chapter 8 – Risk and Return – Fundamentals of Finance pressbooks.pub Pressbooks via serper

Referenced by nodes (2)

• expected return concept
• portfolio concept