The formula used to calculate the weighted mean is as follows:
Let’s assume you have two portfolios, an Roth IRA and a Traditional IRA. The Roth IRA has an average expense ratio of 0.15% and a total portfolio value of $7,000, while the the Traditional IRA has an average expense ratio of 0.47% and a total portfolio value of $3,000.
Using these values we can calculate the weighted average expense ratio as follows:
Using an HP12C calculator, we can calculate the weighted average using the following keystrokes:
[.0015][ENTER]
[7000][Σ+]
[.0047][ENTER]
[3000][Σ+]
[g][x-bar w]
This formula is commonly used to calculate the weighted average expense ratio of a portfolio of investments.
Thanks for the insightful article. It was packed with information and provided great insights. For those who are interested in the world of viral real estate SEO, don’t hesitate to check out https://www.elevenviral.com for additional insights.