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formula for weighted average of price relative. We shall consider only fixed weights in average of relatives index calculations. A weighted average calculation resolves this complication.
Weighted Average Formula In Excel Easy Excel Tutorial from www.excel-easy.com
To find your weighted average simply multiply each number by its weight factor and then sum the resulting numbers up. Consider the following formula. Then the total amount paid for the shares 3000 in this case is divided by the number of shares acquired over both years 150 to get the weighted average price paid of 20.
Average of Price Relative Method using the geometric mean.
Weights used are the quantity weights. In words this means that you multiply each price you paid by the number of shares you bought at that. Divide sum obtained in step 2 by the number of commodities N. Items Weight in Base year price Rs.
