#calculation

2 public notes

Are the units in your answer compatible?

Checking units can expose an error before any detailed calculation. A printer producing 20 pages per minute needs five minutes for 100 pages, because pages divided by pages per minute leaves minutes. Multiplying those quantities would produce units that do not represent the time being asked for.

Thinking♡ 0🔖 0

averages

A weighted average follows the money's proportions

A portfolio return depends on how much money was in each asset, not just the average of their returns. If 90% starts in an asset gaining 2% and 10% starts in one gaining 20%, the combined return is 3.8%. Simply averaging 2% and 20% gives 11%, which ignores the unequal starting amounts.

Money Basics♡ 0🔖 0