Assertion: portfolio's return | /r/HasProperty | expected
Facets:
Source sentences:
text: In it, Markowitz argued that portfolios should optimize expected return relative to volatility.
text: MPT assumes that investors are risk averse, meaning that given two portfolios that offer the same expected return, investors will prefer the less risky one.
text: The expected return of a portfolio is the anticipated amount of returns that a portfolio may generate, whereas the standard deviation of a portfolio measures the amount that the returns deviate from its mean.
text: Portfolios can also be efficient or inefficient depending on their expected return.
text: The expected return of a portfolio is calculated by multiplying the weight of each asset by its expected return and adding the values for each investment.
text: To calculate the expected return of the portfolio, you divide the current value of the first asset by the total value of the portfolio, and multiply it by its expected return:
text: Modern portfolio theory assumes that investors are risk-averse, meaning that given two portfolios that offer the same expected return, investors will prefer the less risky one.
text: As both portfolios have the same expected return, any investor will choose to invest in portfolio A as it has the same expected earnings as portfolio B but with less risk.