The Math Behind HalalFolio

How We Calculate

Full transparency into our methodology. Verify, understand, and test.

Expected Portfolio Return

Modern Portfolio Theory (MPT)

The expected return of a portfolio is the weighted average of the expected returns of its constituent assets. This foundational concept from Harry Markowitz's 1952 paper "Portfolio Selection" forms the basis of modern investment theory.

Formula

E(Rₚ) = Σ(wᵢ × E(Rᵢ))

Why This Matters

This tells you, on average, how much your portfolio might grow annually. It's a starting point for planning, but actual returns will vary.

Learn More

Investopedia: Portfolio Return Markowitz, H. (1952)

Portfolio Assets

Wt%

Ret%

σ%

Wt%

Ret%

σ%

Step-by-Step

SPUS contribution

60.0% × 8.0%=4.80%

HLAL contribution

40.0% × 9.0%=3.60%

Expected Return8.40%

Disclaimer: These calculations are for educational purposes. Actual investment returns are not guaranteed and may differ significantly from projections.