Expected Return E(R)

The expected return for an individual investment:

E(R) = p1R1 + p2R2 + …..+ pnR
Where:
pn = the probability the return actually will occur in state n
Rn = the expected return for state n

The expected return on a portfolio:
E(R) of a portfolio = w1R1 + w2R2 + …+ wnRn

Where:
Wi = weight of asset i
Ri = the expected return of asset i