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weighted average

   Also found in: Dictionary/thesaurus, Financial, Acronyms, Encyclopedia, Wikipedia 0.02 sec.

weighted average

Average that reflects the relative importance of its components. Each element is allotted a proportion of 100% according to its relative importance. Its contribution to the total is then reduced by that percentage. The average is then calculated using the adjusted total.



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The CDO has an expected weighted average life of 8.
The weighted average original loan-to-value (OLTV) ratio is 67.
The weighted average original loan-to-value (OLTV) ratio is 71.
 
 
 
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