Weighted Mean Excel Template

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Let say you have a data set with 10 data points and we want to
calculate the weighted mean for that. 

Data Set (X) Weights (W) Data Set (X) * Weights (W)
4 25% 1.00
6 20% 1.20
8 10% 0.80
9 10% 0.90
22 5% 1.10
83 3% 2.49
98 2% 1.96
45 7% 3.15
87 5% 4.35
10 13% 1.30

Weighted Mean is calculated using the formula given below

Weighted Mean = w1*X1 + w2*X2 + w3*X3……………+wn*Xn

Weighted Mean 18.25

Data Set (X) Weights (W) Data Set (X) * Weights (W)
4 10% 0.40
6 10% 0.60
8 10% 0.80
9 10% 0.90
22 10% 2.20
83 10% 8.30
98 10% 9.80
45 10% 4.50
87 10% 8.70
10 10% 1.00

Weighted Mean is calculated using the formula given below

Weighted Mean = w1*X1 + w2*X2 + w3*X3……………+wn*Xn

Weighted Mean 37.20

Arithmetic Mean is calculated using the formula given below

Arithmetic Mean = (Sum of All the Data Points) / Number of Data Points

Arithmetic Mean 37.2

Let’s say you have a portfolio in which you have stocks, bonds, and commodities. So
basically we have a portfolio in which we have invested in stocks, bonds, and commodities.
Following are the weights /proportions of each of the instrument have in your portfolio:

Weight Return
Stocks 50% 20%
Bonds 30% 7%
Commodities 20% 12%

Weighted Mean is calculated using the formula given below

Weighted Mean = w1*X1 + w2*X2 + w3*X3……………+wn*Xn

Weighted Mean 14.50%

Simple Average Return of Portfolio is calculated using the formula given below
Simple Average Return of Portfolio = Sum of Returns / Number of Items

Simple Average 13%

Return of Portfolio