Example:Expected Portfolio Returns Consider the portfolio weights computed previously.If the individual stocks have the following expected returns,what is the expected return for the portfolio? DCLK:19.65% a KO: 8.96% INTC: 9.67% o KEI: 8.13% ■E(Rp)=.133(19.65)+.2(8.96)+.267(9.67) +.4(8.13)=10.24% 1111 Example: Expected Portfolio Returns n Consider the portfolio weights computed previously. If the individual stocks have the following expected returns, what is the expected return for the portfolio? q DCLK: 19.65% q KO: 8.96% q INTC: 9.67% q KEI: 8.13% n E(RP) = .133(19.65) + .2(8.96) + .267(9.67) + .4(8.13) = 10.24%