weighting business definition

The assigning of a measure of relative importance to each of a group of variables that are combined. For example, if an investor has 70% of his or her invested funds in stock A, which provides a current yield of 3%, and the remaining 30% of the invested funds in stock B, which provides a current yield of 5%, the weighted current yield of both securities is (0.70)(0.03) + (0.30)(0.05), or 3.6%.