True or False: The expected return of a two-asset portfolio is equal to the product of the weight
assigned to the first asset and the expected return of the first asset plus the product of the weight
assigned to the second asset and the expected return of the second asset.

Question

Quizplus · Accepted Answer

The expected return of a two-asset portfolio is calculated as the weighted average of the expected returns of the individual assets, which involves multiplying each asset's expected return by its respective weight in the portfolio and summing the results.

True or False: the Expected Return of a Two-Asset Portfolio