Asked by tedlapelly pruthvi on Sep 27, 2024

A portfolio expected return E(Rp)of 3 stocks with the quantities w1 = .40,w2 = .50,w3 = .10,E(R1)= .10,E(R2)= .15,and E(R3)= .02 is equal to 0.117.

Expected Return

The weighted average of all possible returns for an investment, taking into account the likelihood of each outcome.

Portfolio

An assortment of financial assets such as shares, debts, natural resources, liquid cash, and near-cash items, encompassing mutual funds and Exchange-Traded Funds.

  • Acquire knowledge on the principles underlying portfolio theory in finance.