Solver Corporate Finance: Calculate return on portfolio of upto 3 securities

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Source code of 'Corporate Finance: Calculate return on portfolio of upto 3 securities'

This Solver (Corporate Finance: Calculate return on portfolio of upto 3 securities) was created by by Shruti_Mishra(0)

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About Shruti_Mishra: I am a maths graduate from India and am currently persuing masters in Operations Research.

==section input
Calculate return on a portfolio, given return on individual securities. Return on 
Security 1 = *[input r1=5]%, Security 2 = *[input r2=6]%, Security 3 = *[input r3=7]%. 
The composition of portfolio (value wise): 
Security 1 = *[input w1=30]%, Security 2 = *[input w2=30]%, Security 3 = *[input w3=40]%.

==section solution

The return on any <A HREF="portfolio.lesson">portfolio</A> of assets can be calculated using returns of its constituents. The formula for the same is
 
<center>
{{{ Return = sum(Ri * Wi, i=1,n)}}}
</center>
 
where Ri is the return on the security and Wi is the percentage weight of the security in the <A HREF="portfolio.lesson">portfolio</A>.
 
In this case, the return is thus 
<center>
Return = $r1*$w1/100 + $r2*$w2/100 + $r3*$w3/100 = *[assign e= $r1*$w1/100 + $r2*$w2/100 + $r3*$w3/100 ] $e.
</center>
 The return on <A HREF="portfolio.lesson">portfolio</A> is thus $e%

==section output
e

==section check
 r1=5 r2=6 r3=7 w1=30 w2=30 w3=40 e=6.1