L2 · Required

Portfolio weights and diversification

Understand how positions affect the portfolio.

What you should be able to do

Independently: Calculate two-asset portfolio return and check total weights.

Suggested prerequisites

Returns and benchmarks

A short guide

Understand how positions affect the portfolio. Calculate two-asset portfolio return and check total weights. Read the indicated source section, identify its key concepts and conditions, and work through the example. Record inputs, sources, units and assumptions. Keep your method separate from the result, mark unanswered questions, and review the output against the checklist.

An example

60% × 10% + 40% × 0% = 6%.

Your task

Calculate two-asset portfolio return and check total weights.

Start with this source

Read the indicated section relevant to portfolio weights and diversification and complete the applied task.

This source is awaiting renewed review. Try the task above and adjacent skills; reviewed sources will appear here.

Your learning checklist

Required items: 0 / 10 completed or already known

Device storage

Next: Read a role through its responsibilities

Checklist statuses are self-reported; exercise scores are recorded separately. You can reset any item.

Self-check

Try a practice set

Calculations and choices receive immediate checks. Review open responses yourself against the rubric. All examples are educational.

1. Price moves from 100 to 108 and pays dividend 2. What is total return (%)?
2. Which is a testable investment claim?
3. After the investment thesis and counter-evidence task, state one assumption, one supporting fact and one condition that would change your conclusion.