Knowing these totals weighted average return can now be calculated by multiplying the percentage of the portfolio each stock takes up by the rate of return on each. It is the rate of discount r at which. To calculated a weighted average you can use the SUMPRODUCT function together with the SUM function.
The money-weighted rate of return MWRR refers to the internal rate of return on a portfolio.
It is the rate of return that equates the initial value of an investment with future cash flows such as dividends and sale proceeds. Money-weighted return is the internal rate of return of an investment. One example of average return is the simple arithmetic mean. It is the rate of return that equates the initial value of an investment with future cash flows such as dividends and sale proceeds.