Combining the Riskless Asset and a single Risky Asset The expected return of the portfolio is the weighted average of the component returns up-WrLi:W2uz p=W11+(1-W1)u2 Copyright 2009 Pearson Education,Inc.Publishing as Prentice Hall 16Combining the Riskless Asset and a Single Risky Asset  The expected return of the portfolio is the weighted average of the component returns mp = W1*m1 + W2*m2 mp = W1*m1 + (1- W1)*m2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 16