Weighted Average: A statistical average in which each number being averaged is multiplied by the numerical proportion of that number in the overall sample.  For example, if a $60,000 portfolio consists of 10,000 in bonds yielding 5%, 20,000 in bonds yielding 6%, and 30,000 in bonds yielding 7%, the weighted average would be: ((10,000 X .05)+(20,000 X .06)+(30,000 X .07))/60,000= 6.333%