Saving money on health care can be a challenge. But weâre here to help. There are a number of ways to reduce your out-of-pocket costs. For example, choose an in-network doctor or hospital instead of one thatâs out of network. Another good way to save is to choose a plan that is compatible with a tax-advantaged health savings account. Explore more ways to save.
Time-weighted return. Related Articles. Time-weighted returns is a measure of the compound rate of return of a portfolio over a stated period of time. It requires a set of sub-period returns to be calculated whenever there is an external cash flow, such as a deposit or withdrawal from the portfolio.
This formula adds all of the numbers and divides by the amount of numbers. An example would be the average of 1,2, and 3 would be the sum of 1 + 2 + 3 divided by 3, which would return 2. However, the weighted average formula looks at how relevant each number is. Say that 1 only happens 10% of the time while 2 and 3 each happen 45% of the time. The percentages in this example would be the weights. The weighted average would be 2.35. The weighted average formula is a general mathematical formula, but the following information will focus on how it applies to finance. Use of Weighted Average Formula The concept of weighted average is used in various financial formulas.