Finance School of Management Measuring portfolio return Portfolio of n risky assets ∑/(1+) =∑r ∑ I;: the initial investment in asset i(if 1; <0, short selling) w;: the proportion of the portfolio investing in asset I r: the rate of return on asset p the rate of return on the portfolio uesTc17 Finance School of Management Measuring Portfolio Return – Ii : the initial investment in asset i (if Ii <0, short selling) – wi : the proportion of the portfolio investing in asset I – ri : the rate of return on asset I – rp : the rate of return on the portfolio ❖ Portfolio of n risky assets 1 (1 ) 1 i i n i p i i i I r r w r I = + = − =    = i wi 1