7. Portfolio expected return and risk A collection of financial assets and securities is referred to as a portfolio. Most individuals and institutions invest in a portfolio, making portfolio risk: analysis an integral part of the field of finance. Just like stand-alone assets and securities, portfolios are aiso exposed to risk, Portfolio risk refers to the possibelity that an investment portfolio will not generate the investor's expected rate of return. TAnalyzing portfolio risk and return involves the understanding of expected returns from a portfolio. Consider the following case: Andre is an amateur investor who hoids a small portfolio consisting of only four stocks. The stock holdings in his portfolio are shown in the following table: What is the expected return on Andre's stock portfolio? 16.65% 11,10% 8.32.5 14.99%