To calculate a price-weighted average, sum the stock prices and divide by the number of stocks. This average reflects changes in higher-priced stocks more than lower-priced ones. Use price-weighted ...

Invested capital equals the sum of all cash that has been invested in a company over its life with no regard to financing form or accounting name. In our calculation of ROIC, we use a time-weighted ...

The purchase price is what an investor pays for a security. It is the main component in calculating the returns achieved by the investor.