Equal Weighting Calculator

✖Number of Securities in the Index refers to the total number of securities in the index during a point of time.ⓘ Number of Securities in the Index [N]

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✖Equal Weighting refers to a strategy where each stock in the index has an equal influence on the performance of the index.ⓘ Equal Weighting [Wi^E]

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Formula

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Equal Weighting

Formula

`"Wi"^{"E"} = 1/"N"`

Example

`"0.333333"=1/"3"`

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Equal Weighting Solution

STEP 0: Pre-Calculation Summary

Formula Used

Equal Weighting = 1/Number of Securities in the Index
Wi^E = 1/N
This formula uses 2 Variables

Variables Used

Equal Weighting - Equal Weighting refers to a strategy where each stock in the index has an equal influence on the performance of the index.
Number of Securities in the Index - Number of Securities in the Index refers to the total number of securities in the index during a point of time.

STEP 1: Convert Input(s) to Base Unit

Number of Securities in the Index: 3 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

Wi^E = 1/N --> 1/3

Evaluating ... ...

Wi^E = 0.333333333333333

STEP 3: Convert Result to Output's Unit

0.333333333333333 --> No Conversion Required

FINAL ANSWER

0.333333333333333 ≈ 0.333333 <-- Equal Weighting

(Calculation completed in 00.004 seconds)

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Created by Aashna

IGNOU (IGNOU), India

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< 19 Equity Calculators

Float-Adjusted Market Capitalisation Index

Go Float Adjusted Market Capitalisation = (Fraction of Shares Outstanding*Number of Shares Outstanding of Security*Price of the Security)/(sum(x,1,Number of Securities in the Index,(Fraction of Shares Outstanding*Number of Shares Outstanding of Security*Price of the Security)))

Market Capitalization Index

Go Market Capitalization = (Number of Shares Outstanding of Security*Price of the Security)/(sum(x,0,Number of Securities in the Index,(Number of Shares Outstanding of Security*Price of the Security)))

Laspeyres Price Index

Go Laspeyres Price Index = ((sum(x,1,2,(Price in Final Period*Quantity in Base Period)))/(sum(x,1,2,(Price in Base Period*Quantity in Base Period))))*100

Paasche Price Index

Go Paasche Price Index = ((sum(x,1,3,(Price in Final Period*Quantity in Final Period)))/(sum(x,1,3,(Price in Base Period*Quantity in Final Period))))*100

Altman's Z Score Model

Go Zeta Value = 1.2*Working Capital+1.4*Retained Earnings+3.3*Earnings Before Interest and Taxes+0.6*Market Value of Equity+1.0*Total Sales

Capital Allocation Line

Go Expected Return on Portfolio = ((Expected Return on Treasury Bill*Weight of Treasury Bill)+(Expected Return of Stock*Weight of Stock))*100

Justified Forward Price to Earnings Ratio

Go Justified Forward Price to Earnings Ratio = (Dividend/Earnings Per Share)/(Cost of Equity-Growth Rate)

Margin Call Price

Go Margin Call Price = Initial Purchase Price*((1-Initial Margin Requirement)/(1-Maintenance Margin Requirement))

Dividend Coverage Ratio

Go Dividend Coverage Ratio = (Net Income-Preferred Dividend)/Common Dividend

Fisher Price Index

Go Fisher Price Index = sqrt(Laspeyres Price Index*Paasche Price Index)

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Go Momentum Indicator = (Closing Price of Particular Stock/Closing Price of Stock N Days Ago)*100

Marshall-Edgeworth Price Index

Go Marshall Edgeworth Price Index = (Laspeyres Price Index+Paasche Price Index)/2

Dividend Growth Rate

Go Dividend Growth Rate = (Previous Year Dividend/Current Year Dividend)-1

Price to Cash Flow Ratio

Go Price to Cash Flow Ratio = Current Share Price/Operating Cash Flow

Margin Account Value

Go Margin Account Value = (Margin Loan)/(1-Maintenance Margin)

Sustainable Growth Rate

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Ev to Ebitda Ratio

Go Enterprise Value to Ebitda Ratio = Enterprise Value/EBITDA

Maximum Leverage Ratio

Go Maximum Leverage Ratio = 1/Initial Margin Requirement

Equal Weighting

Go Equal Weighting = 1/Number of Securities in the Index

Equal Weighting Formula

Equal Weighting = 1/Number of Securities in the Index
Wi^E = 1/N

What do you mean by Equal Weighting ?

Equal Weighting refers to a type of proportional measuring method that gives the same importance to each stock in a portfolio, index, or index fund. When applied to the NASDAQ Composite Index, which traditionally is market-cap weighted , an equal-weighted NASDAQ index would treat each stock equally regardless of its size. To create an equal-weighted version of the NASDAQ Composite Index, one would need to allocate the same percentage of the index's total value to each constituent stock. This means that smaller companies would have a proportionally larger impact on the index's performance compared to a market-cap weighted version.

How to Calculate Equal Weighting?

Equal Weighting calculator uses Equal Weighting = 1/Number of Securities in the Index to calculate the Equal Weighting, Equal Weighting is defined as a strategy in index construction where each component of the index is given the same weight, regardless of its market capitalization or any other fundamental factor. Equal Weighting is denoted by Wi^E symbol.

How to calculate Equal Weighting using this online calculator? To use this online calculator for Equal Weighting, enter Number of Securities in the Index (N) and hit the calculate button. Here is how the Equal Weighting calculation can be explained with given input values -> 0.333333 = 1/3.

FAQ

What is Equal Weighting?

Equal Weighting is defined as a strategy in index construction where each component of the index is given the same weight, regardless of its market capitalization or any other fundamental factor and is represented as Wi^E = 1/N or Equal Weighting = 1/Number of Securities in the Index. Number of Securities in the Index refers to the total number of securities in the index during a point of time.

How to calculate Equal Weighting?

Equal Weighting is defined as a strategy in index construction where each component of the index is given the same weight, regardless of its market capitalization or any other fundamental factor is calculated using Equal Weighting = 1/Number of Securities in the Index. To calculate Equal Weighting, you need Number of Securities in the Index (N). With our tool, you need to enter the respective value for Number of Securities in the Index and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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