weighted avg BA II plus

CFA Level III
#1

I could almost swear I knew how to do weighted avg in BA II plus for level II, but now when I punsh in X’s and their corrisponding Y’s, I simply get an avg of the x values without the y being considered as a weight

am I doing something wrrong, or you just cant do weighted avg in ba II plus

#2

Expected Return

The return on an investment as estimated by an asset pricing model is calculated by taking the average of the probability distribution of all possible returns. For example, a model might state that an investment has a 10% chance of a 100% return and a 90% chance of a 50% return. The expected return is calculated as:

Expected Return = 0.1 (1) + 0.9 (0.5) = 0.55 = 55%.

On the calculator:

• Press [1] [0] [%] [X] [1] [0] [0] [%] . • Press [=] [STO] [1]. • Press [9] [0] [%] [X] [5] [0] [%]. • Press [=] [STO] [2]. • Press [RCL] [1] [+] [RCL] [2] [=].

#3

thanks, so thats the only way, i dont remmber it being this long…?

maybe all along i was doing my method and getting a wrrong value cause it is not being weighted, simply avg of x’s

hahah

#4

you can use 2nd data(7) then it ask x and y . after that 2nd stat(8) arrow up and down.

if this is what you are looking for.

#5

To further what sherbeer stated.

Return of a portfolio

  1. Enter the data in percent format in 2nd data(7) in decimal form
  2. x’s get % weights
  3. y’s get % portfolio return
  4. 2nd STAT
  5. press the up arrow once to see SigmaXY (this is your weighted average)

Active Return between manager and benchmark (this is were the magic is)

  1. Enter the data in percent format in 2nd data(7) in decimal form
  2. x’s get % weights
    1. (asset category %)(Manager Allocation %)
    2. I like to add all of these first since they are typically split into 2 exhibits
  3. y’s get % portfolio return
    1. (Actual return %) - (Benchmark return %)
  4. 2nd STAT
  5. press the up arrow once to see SigmaXY (this is your weighted average)
#6

I didnt know there was even an option. I just store the values.

#7

You can use the DATA and STAT functions. To borrow from cpk123’s example, enter (100,10) and (50,90) using DATA and go into STATS, 1-V and it wil show Xbar as 55. Just convert the percentage weightings into whole integers.

From the BA II instruction manual, I don’t think the calculator can handle decimal/percentage weights.