Considering the beta value of the three assets in my portfolio simulation and the weights of the assets, i have computed the beta of the portfolio itself. How can i calculate the expected return of the portfolio?

(I have also the expected return for each of the three assets)


closed as off-topic by LocalVolatility, JejeBelfort, chollida, Helin, David Addison Feb 11 '18 at 21:33

This question appears to be off-topic. The users who voted to close gave this specific reason:

  • "Basic financial questions are off-topic as they are assumed to be common knowledge for those studying or working in the field of quantitative finance." – LocalVolatility, JejeBelfort, chollida, Helin, David Addison
If this question can be reworded to fit the rules in the help center, please edit the question.


The expected return of the portfolio is just the weighted sum of the expected returns of the assets, i.e. $$ R_P = w_1\cdot R_1 + w_2\cdot R_2 + w_3\cdot R_3, $$ where $w_1, w_2, w_3$ are the porfolio weights and $R_1, R_2, R_3$ are the expected returns for the assets.


Not the answer you're looking for? Browse other questions tagged or ask your own question.