                                                       Risk and Return  Concepts  Expected Return  Measures of Risk  Portfolio Risk and Return  Diversification  Capital Asset Pricing Model  Risk and Return Equations  Tools & Problems  Expected Return Calculator  Expected Return Exercise  Expected Return Quiz  Two Asset Portfolio Calculator  Two Asset Portfolio Exercise  Two Asset Portfolio Quiz  CAPM Calculator  CAPM Exercise  CAPM Quiz     # Two Asset Portfolio Calculator: Introduction The Two Asset Portfolio Calculator can be used to find the Expected Return, Variance, and Standard Deviation for portfolios formed from two assets. Expected Return Fields - Enter the Expected Return on Stocks 1 and 2 in these fields. Standard Deviation Fields - Enter the Standard Deviation on Stocks 1 and 2 in these fields. Correlation Coefficient Fields - Enter the Correlation Coefficient between the returns on Stocks 1 and 2 in this field. Buttons - Press the Calculate button to calculate the Expected Return, Variance and Standard Deviation on portfolios formed from Stocks 1 and 2. Press the Clear button to clear the calculator. Portfolio Returns - The Expected Return, Variance, and Standard Deviation for the portfolios formed from Stocks 1 and 2 are displayed in this table. For each row in the table, the first column indicates the weight of Stock 1 in the portfolio (the weight of Stock 2 is 100% minus the weight of Stock 1), the second column provides the Expected Return on the portfolio, the third column provides the Variance of the portfolio, and the fourth column provides the Standard Deviation of the portfolio. Now you are ready to use the Two Asset Portfolio Calculator. © 2002 - 2010 by Mark A. Lane, Ph.D.