EOM 4 Investment return analysis

[star000]

I am currently on the investment analysis tab and I have trouble with the overall average. It says "An estimate for the overall estimated yield for all years can be found as the weighted average of the annual yield and the value of assets at the beginning of the year". So what is the formula should i use for cell K18:N18.
My formula gave me overall yield 4.61% which is not correct i think.
Any help would be highly appreciated!

[surdahl]

I don't know the exact cell references, but the formula should be:

SUMPRODUCT(Asset value beginning of year for all years , return on assets for each year for all years) / SUM(Asset value beginning of year for all years)

[star000]

Originally Posted by surdahl

I don't know the exact cell references, but the formula should be:

SUMPRODUCT(Asset value beginning of year for all years , return on assets for each year for all years) / SUM(Asset value beginning of year for all years)

Got it. Thank you so much!

[its_me]

For those doing the prior version of FAP,for Task1 Part 3, I am thinking that we weight the Asset Values @ Beginning Of Year and Investment Incomes by 0.5,0.3 and 0.2 to get the Total ( Columns F J & N).
Am I right?

[Anitha Desai]

Originally Posted by its_me

For those doing the prior version of FAP,for Task1 Part 3, I am thinking that we weight the Asset Values @ Beginning Of Year and Investment Incomes by 0.5,0.3 and 0.2 to get the Total ( Columns F J & N).
Am I right?

I don't think you use weighting to calculate totals in columns F, J and N.
You only use it to calculate avergae yields in columnds K, L, M and N, row 18.

[its_me]

Originally Posted by Anitha Desai

I don't think you use weighting to calculate totals in columns F, J and N.
You only use it to calculate avergae yields in columnds K, L, M and N, row 18.

1. where have they mentioned that the values given in tab 8 is already weighted?

i thought col F & J is the result of weighting the prev 3 columns
the formulas apply for the total

2. the avg yeild is sumproduct( estimated yields & Asset Values)/Sum( asset values)