Weighted average: Difference between revisions
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imported>Doug Williamson (Add example.) |
imported>Doug Williamson (Classify page.) |
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* [[Simple average]] | * [[Simple average]] | ||
* [[Weighted Average Life]] | * [[Weighted Average Life]] | ||
* [[Weighted average cost]] | |||
* [[Weighted average cost of capital]] | * [[Weighted average cost of capital]] | ||
* [[Weighted average maturity]] | * [[Weighted average maturity]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:The_business_context]] | |||
[[Category:Liquidity_management]] |
Revision as of 06:59, 24 August 2019
Statistics.
A weighted average is an average calculated using appropriate weighting factors, often market values.
For example, the weighted average of 10% and 3.6%, weighted by market values of $75m and $25m respectively, is:
(10% x $75m) + (3.6% x $25m) / ($75m + $25m)
= 8.4%