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Portfolio expected rate of return


R = portror(Return,Weight)



1-by-N matrix of rates of return. Each column of Return represents the rate of return for a single security


M-by-N matrix of weights. Each row of Weight represents a different weighting combination of the assets in the portfolio.


R = portror(Return,Weight) returns a 1-by-M vector for the expected rate of return.


collapse all

This example shows a portfolio that is made up of two assets ABC and XYZ having expected rates of return of 10% and 14%, respectively. If 40% percent of the portfolio's funds are allocated to asset ABC and the remaining funds are allocated to asset XYZ, the portfolio's expected rate of return is:

r = portror([.1 .14],[.4 .6])
r = 0.1240


Bodie, Kane, and Marcus. Investments. Chapter 7.

Introduced before R2006a