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Two-Asset Portfolio Expected Return and Variance Calculator

Mean-variance analysis for a two-stock portfolio.

Calculates portfolio return E[R_p] = w₁R₁ + w₂R₂ and variance σ²_p = w₁²σ₁² + w₂²σ₂² + 2w₁w₂ρσ₁σ₂ for two assets with given weights, returns, volatilities, and correlation.

Daniel Oh By Daniel Oh
Published Last reviewed 1 min read

Inputs

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Results

Enter values and click Calculate to see results.
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How to use this calculator

  1. Fill in the inputs above using the units you already have.
  2. Values update automatically as you type — no submit button needed.
  3. Hover any result row for the underlying formula and intermediate values.

Formula

σ²_p = w₁²σ₁² + w₂²σ₂² + 2w₁w₂ρσ₁σ₂

In depth

Calculates portfolio return E[R_p] = w₁R₁ + w₂R₂ and variance σ²_p = w₁²σ₁² + w₂²σ₂² + 2w₁w₂ρσ₁σ₂ for two assets with given weights, returns, volatilities, and correlation.