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.
A lot of thanks for each of your labor on this website. My daughter take interest in going through investigation and it’s simple to grasp why. Most of us notice all concerning the compelling mode you offer good strategies via your website and even recommend participation from others on that content plus our own princess is actually discovering a lot. Take advantage of the remaining portion of the year. Your performing a powerful job.