Q » How do you calculate the weighted average return of a portfolio?

Steven

06 Dec, 2025

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A » To calculate the weighted average return of a portfolio, multiply the return of each individual asset by its respective weight in the portfolio and sum the results. The formula is: Weighted Average Return = Σ (Weight of Asset × Return of Asset). Ensure the weights represent the proportion of each asset's value relative to the total portfolio value.

Michael

06 Dec, 2025

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A »To calculate the weighted average return of a portfolio, multiply each investment's return by its weight (percentage of total portfolio value), then sum these products. The formula is: (Return1 * Weight1) + (Return2 * Weight2) + ... + (ReturnN * WeightN). This gives the overall portfolio return, reflecting the contribution of each investment.

David

06 Dec, 2025

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