Weighted Average Returns Calculator

What is Weighted Avg. Returns?

Weighted average returns are a calculation of the return of an entire portfolio, where different investments are given different weights according to their market value. It takes into account how much capital is invested in particular investment.

This reflects the idea that some investments are more important to the portfolio than others. The calculation is performed by multiplying each investment's return by its weight and then summing these products.

How is the Weighted Avg. Returns calculated & the formula used?

The Weighted Average Returns calculation measures the performance of a portfolio by taking into account the size of each investment made. The calculation assigns a weight to each investment based on its size in relation to the total size of the portfolio. This weighting gives more importance to larger investments and less importance to smaller investments. The calculation then calculates the return for each investment and sums these returns together. Finally, it divides this sum by the total weight of all the investments to calculate the weighted average return.

What are the benefits of using Weighted Avg. Returns calculator?

Some of the benefits of using Weighted Avg. Returns calculator include: obtaining more accurate results, understanding how different weights impact the overall return, and calculating returns for different periods of time. Additionally, the calculator can help investors analyze their portfolios and make better investment decisions.