The weighted arithmetic mean significantly overestimates the mean price-to-earnings ratio. Advantages and Disadvantages . ... What Is the Difference Between Harmonic Mean and Arithmetic Mean?

The primary difference between market cap and value-weighted strategies lies in their focus. Market cap-weighted indexes ...

The Dow Jones Industrial Average is more popular, but that doesn't mean it's the better stock index. Q: What's the difference between the Dow Jones Industrial Average and the S&P 500? The Dow ...

How the Dow Is Weighted The DJIA is price-weighted . Rather than using a simple arithmetic average and dividing by the number of stocks in the average, the Dow Divisor is used.

For example, during the third quarter 2015, Netflix's weighted average number of shares outstanding was 437.6 million (diluted); during the same period, AT&T's was 5.94 billion.