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In finance, the weighted-average life (WAL) of an amortizing loan or amortizing bond, also called average life, [1] [2] [3] is the weighted average of the times of the principal repayments: it's the average time until a dollar of principal is repaid. In a formula, [4] = =,
The number weighted average of the times of the principal repayments of an amortizing loan is referred to as the weighted-average life (WAL), also called "average life". It's the average time until a dollar of principal is repaid. In a formula, = =, where:
Similarities in both values and definitions of Macaulay duration versus Weighted Average Life can lead to confusing the purpose and calculation of the two. [12] For example, a 5-year fixed-rate interest-only bond would have a Weighted Average Life of 5, and a Macaulay duration that should be very close. Mortgages behave similarly.
The post Dollar Weighted vs. Time Weighted: Investments appeared first on SmartReads by SmartAsset. The time-weighted return on investment tells you how it performed objectively.
How to calculate time-weighted return. The following formula calculates the cumulative return of the portfolio: TWR = [(1 + HP1) × (1 + HP2) ×⋯× (1 + HPn)] − 1 ... this calculation is a bit ...
An exponential moving average (EMA), also known as an exponentially weighted moving average (EWMA), [5] is a first-order infinite impulse response filter that applies weighting factors which decrease exponentially. The weighting for each older datum decreases exponentially, never reaching zero. This formulation is according to Hunter (1986). [6]
The weighted arithmetic mean is similar to an ordinary arithmetic mean (the most common type of average), except that instead of each of the data points contributing equally to the final average, some data points contribute more than others.
Average CEO Pay is calculated using the last year a director sat on the board of each company. Stock returns do not include dividends. All directors refers to people who sat on the board of at least one Fortune 100 company between 2008 and 2012. The Pay Pals project relies on financial research conducted by the Center for Economic Policy and ...