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This post explains how to calculate Weighted Average in Excel with percentages. In a standard arithmetic average where the sum of values is divided by the number of values, each data value is ...
In the investment world, it’s common to discuss average rates of return. It’s not sufficient, however, to simply add up historical returns and divide by how many there are.
Simple arithmetic might not be the best way to measure the success of an investment so when looking at rate of return the investor might want to double-check the math.
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