2 Asset Portfolio Calculator ·

02 Jun 2024, 00:00

2 Asset Portfolio Calculator Image to Crop

Asset 1 makes up % of a portfolio
It has an expected return of %
It has volatility = %.

Asset 2 makes up % of a portfolio
It has an expected return of %
It has volatility = %.

With a covariance of %
calculate the expected return, variance, and standard deviation of the portfolio

Calculate expected return:

Expected Return = Asset 1% x Expected Return of Asset 1 + Asset 2% x Expected Return of Asset 2
Expected Return = 0 x 0 + 0 x 0
Expected Return = 0 + 0
Expected Return = 0 or 0

Calculate the variance of the portfolio σ2:

Portfolio Variance = Asset 2%2 x Volatility of Asset 12 + Asset 2%2 x Volatility of Asset 22 + 2 x Asset 1 % x Asset 2% x Covariance x Volatility of Asset 1 x Volatility of Asset 2
Portfolio Variance = 02 x 02 + 02 x 02 + 2 x 0 x 0 x 0 x 0 x 0
Portfolio Variance = 0 x 0 + 0 x 0 + 0
Portfolio Variance = 0 + 0 + 0
Portfolio Variance = 0 or 0%

Calculate the volatility σ

We want square root of the variance
σ = √σ2
σ = √0

σ = 0 or 0%

You have 1 free calculations remaining

What is the Answer?

σ = 0 or 0%

How does the 2 Asset Portfolio Calculator work?

Free 2 Asset Portfolio Calculator - Given a portfolio with 2 assets, this determines the expected return (mean), variance, and volatility (standard deviation) of the portfolio.
This calculator has 7 inputs.

What 1 formula is used for the 2 Asset Portfolio Calculator?

Portfolio Variance = Asset 2%2 x Volatility of Asset 12 + Asset 2%2 x Volatility of Asset 22 + 2 x Asset 1 % x Asset 2% x Covariance x Volatility of Asset 1 x Volatility of Asset 2

For more math formulas, check out our Formula Dossier

What 5 concepts are covered in the 2 Asset Portfolio Calculator?

2 asset portfolioexpected returnamount of profit or loss an investor anticipates on an investmentstandard deviationa measure of the amount of variation or dispersion of a set of values. The square root of variancevarianceHow far a set of random numbers are spead out from the meanvolatilityMeasures dispersion of returns for an stock or index

2 Asset Portfolio Calculator

Asset 2 makes up % of a portfolioIt has an expected return of %It has volatility = %. With a covariance of %calculate the expected return, variance, and standard deviation of the portfolio = 0 or 0%