In its most basic form, the objective of tracking performance is to see whether your portfolio is growing. However, portfolio performance should also provide insight into the performance of the ...

Weighted average is a powerful tool for an investor. It can be used to evaluate the performance of a portfolio. It can help us better understand how the broader market moves. Even more important, it ...

Time-weighted return (TWR) calculates an investment portfolio or fund’s performance while accounting for external cash flows. Investment funds usually have money flowing in or out at various times.

When a company calculates its earnings over a certain period of time, it divides its profits by the number of outstanding shares. However, companies' outstanding shares can change over time as a ...

To understand how weighted average can achieve all these things, let’s start with the nuts and bolts of the calculation. Weighted averages are often used in investing, especially in how we measure the ...

If you bought a different number of shares with each trade, a simple average of the prices won't be accurate. If you've bought a certain stock over a series of transactions, then it can be useful to ...