# Implied Returns Given a set of portfolio weights and a covariance matrix there is a set of expected returns, we term “implied returns,” which deem the portfolio weights optimal. This can help investors understand the implicit assumptions of maintaining their current portfolio weights. An investor may choose to re-balance their portfolio if the implied returns are substantially different from the asset returns that could be realistically expected in the forthcoming period. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://wpahelp.windhamlabs.com/expected-returns/implied-returns.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.