How To Calculate Weighted Average Return For Portfolio Complete Guide

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how to calculate weighted average return for portfolio. Weighted Avg 10 5 20 10 30 15 40 20 0005 002 0045 008 15. For example if you wanted to figure the return from January 1 2017 to December 31 2017 your first entry would be the value of the account on January.

Weighted Average Formula Step By Step Calculation Examples
Weighted Average Formula Step By Step Calculation Examples from www.wallstreetmojo.com

In the above example the weighted average return works out to -12 18 X 10 27 X 5 55 X -8 compared to a positive 23 arithmetic return. For Stock A it is 02 multiplied by the four percent return or 8. For example if you wanted to figure the return from January 1 2017 to December 31 2017 your first entry would be the value of the account on January.

16250- 15000 15000 833.

Using the weighted average formula we get Weighted Avg w 1 x 1 w 2 x 2 w 3 x 3 w 4 x 4. Divide 450 by 4500 to calculate the first years return of 010 or 10 percent. For example if you wanted to figure the return from January 1 2017 to December 31 2017 your first entry would be the value of the account on January. TWR 1 RN 1 RN 1 100 1 115 1 247 1 122 1 1686 1 47 1 100 2219.