Weighted Average Calculator for Two-Stock Portfolio Return
Estimate the weighted average return of a portfolio with 70% invested in one stock and 30% in another.
Calculates the weighted mean of two values using their respective weights. Enter your Value 1, Weight 1, Value 2, Weight 2 to get an instant weighted average. Formula: (value1 * weight1 + value2 * weight2) / (weight1 + weight2).
Weighted Average
Fill in the fields above and click Calculate
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How It Works
How It Works
The Weighted Average Calculator combines two values while taking their importance (weights) into account. Instead of treating both values equally, it gives more influence to the value with the larger weight.
It multiplies each value by its weight, adds those results together, and then divides by the total of the weights. This gives a single weighted average.
- Multiply Value 1 by Weight 1
- Multiply Value 2 by Weight 2
- Add both results together
- Divide by the sum of Weight 1 and Weight 2
Understanding the Results
The result shows the combined average after considering how important each value is. A higher weight means that value has more impact on the final result.
If both weights are equal, the result becomes a simple average of the two values. The output keeps the same unit as the original values.
- Higher weight = stronger influence on the result
- Equal weights = regular average
- Result will be closer to the value with the larger weight
- Output uses the same unit as the input values
Frequently Asked Questions
What does the Weighted Average Calculator compute?
This calculator computes the weighted mean of two values based on their respective weights. It multiplies each value by its weight, adds the results together, and divides by the total of the weights. The result reflects the relative importance of each value.
When should I use a weighted average instead of a regular average?
Use a weighted average when the two values do not contribute equally to the final result. For example, if one exam counts for 70% of your grade and another counts for 30%, a weighted average gives a more accurate final score than a simple average.
What do the 'Weight 1' and 'Weight 2' fields represent?
The weight fields represent how important or influential each value is in the calculation. Larger weights give more influence to their corresponding values. The weights can be any positive numbers, such as percentages (e.g., 60 and 40) or proportional values (e.g., 3 and 1).
Do the weights need to add up to 100?
No, the weights do not need to total 100. The formula automatically divides by the sum of the weights, so it works correctly whether you use percentages, decimals, or whole numbers. For example, weights of 2 and 3 work just as well as 40 and 60.
What unit will the result be in?
The result will be in the same unit as the input values. The calculator does not convert units, so both values should be entered using the same measurement unit to ensure an accurate result.
What happens if both weights are zero?
If both weights are zero, the formula will attempt to divide by zero, which is undefined. To get a valid result, make sure at least one of the weights is greater than zero.
Disclaimer
This calculator provides estimates for informational purposes only. It is not professional advice. Verify results with a qualified professional. Disclaimer.