Final answer:
To find the overall return of the portfolio, calculate the weighted average return of each investment, and then sum up the results. For example, if the portfolio consists of three investments with weighted average returns of 6%, 8%, and 4%, you would calculate the overall return as 18%.
Step-by-step explanation:
To find the overall return of the portfolio, you need to calculate the weighted average return of each investment. This can be done by multiplying the return of each investment by its weight, and then summing up the results. For example, if Investment A has a return of 5% and a weight of 30%, and Investment B has a return of 7% and a weight of 70%, you would calculate the weighted average return as (0.05 * 0.3) + (0.07 * 0.7) = 0.064, or 6.4%.
Once you have calculated the weighted average return for each investment, you can calculate the overall return of the portfolio by summing up the weighted average returns of all the investments.
For example, if the portfolio consists of three investments with weighted average returns of 6%, 8%, and 4%, you would calculate the overall return as 6% + 8% + 4% = 18%.