Expected Return Excel Template

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Let’s take an example of a portfolio of stocks and bonds where stocks have a 50% weight
and bonds have a weight of 50%. The expected return of stocks is 15% and
the expected return for bonds is 7%.

Stock Bond
Expected Return 15% 7%
Weight 50% 50%

Expected Return is calculated using formula given below

Expected Return for Portfolio =
Weight of Stock * Expected Return for Stock + Weight of Bond * Expected Return for Bond

Expected Return 11%

Let’s take an example of portfolio which has stock Reliance, Tata Steel, Eicher Motors and ITC.

Reliance Tata Steel Eicher Motors ITC

Expected Return 10% 8% 12% 16%
Weight 25% 25% 25% 25%

Expected Return is calculated using formula given below

Expected Return for Portfolio = ∑ Weight of Each Stock * Expected Return for Each Stock

Expected Return 11.50%

Let’s take an example of portfolio of HUL, HDFC and 10 year government bond.

Component 1 Component 2 Component 3

Expected Return 15% 18% 7%
Weight 40% 40% 20%

Expected Return is calculated using the formula given below

Expected Return for Portfolio =
∑ Weight of Each Component * Expected Return for Each Component

Expected Return 14.60%