Portfolio expected rate of return
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
Return— Rates of return
Rates of return, specified as a
N matrix. Each column of
Return represents the rate of return for a single
Weights, specified as a
matrix. Each row of
Weight represents a different
weighting combination of the assets in the portfolio.
R— Expected rate of return
Expected rate of return, returned as a
 Zvi Bodie, Alex Kane, Alan Marcus. Investments. McGraw-Hill Education; 10th edition (September 9, 2013).