
Weighted Average Maturity (WAM) Definition & Example
Aug 21, 2020 · Weighted Average Maturity Calculation with Example The WAM can be calculated by determining the weight of each maturity in the average, multiplying that weight by the security’s …
Weighted Average Cost of Capital (WACC) - InvestingAnswers
Jan 10, 2021 · What is WACC? Using an easy definition, real-world examples & the WACC formula, discover what weighted average cost of capital says about financial health.
Weighted Average Definition & Example | InvestingAnswers
Aug 21, 2020 · Weighted average refers to the mathematical practice of adjusting the components of an average to reflect the importance of certain characteristics.
Price-Weighted Index Definition & Example | InvestingAnswers
Sep 29, 2020 · What is a Price-Weighted Index? A price-weighted index is an index in which the member companies are weighted in proportion to their price per share, rather than by number of …
DJIA -- Dow Jones Industrial Average -- Definition & Example
Aug 27, 2020 · The Dow Jones Industrial Average (DJIA), sometimes referred to as simply the Dow, is one of several well-known stock market indices.
Macaulay Duration Definition & Example | InvestingAnswers
Nov 6, 2020 · The Macaulay duration (named after economist Frederick Macaulay) is a measure of a bond's sensitivity to interest rate changes.
Economic Profit Definition & Example | InvestingAnswers
Sep 29, 2020 · As shown in the formula, there are three components necessary to solve economic profit: net operating profit after tax (NOPAT), invested capital, and the weighted average cost of capital …
Composite Index Definition & Example | InvestingAnswers
Oct 1, 2019 · The index is price-weighted, meaning that the stocks with the highest prices have the most influence on the index. Why Does a Composite Index Matter? Like the Dow Jones Composite …
Cost of Equity: Definition and Example | InvestingAnswers
Sep 29, 2020 · The weighted average cost of capital (WACC) accounts for the costs of both debt and equity, and the amounts of equity and of debt. It is the 'average' return to the company's lenders and …
Weighted Average Market Capitalization Definition & Example
Oct 1, 2019 · The S&P 500, for example, uses a weighted average market capitalization to measure performance. In contrast, for example, the Dow Jones Industrial Average uses a price-weighted …