How to Calculate Portfolio Expected Return?
Portfolio Expected Return calculator uses Portfolio Expected Return = Asset Weight*(Expected Return on Asset 1)+Asset Weight*(Expected Return on Asset 2) to calculate the Portfolio Expected Return, The Portfolio Expected Return formula is defined as the weighted average of the expected returns of the individual assets in the portfolio. Portfolio Expected Return is denoted by ER_{p} symbol.
How to calculate Portfolio Expected Return using this online calculator? To use this online calculator for Portfolio Expected Return, enter Asset Weight (w_{1}), Expected Return on Asset 1 (ER_{1}), Asset Weight (w_{2}) & Expected Return on Asset 2 (ER_{2}) and hit the calculate button. Here is how the Portfolio Expected Return calculation can be explained with given input values -> 0.22 = 0.4*(0.25)+0.6*(0.2).