So to know if a company will meet or exceed your expectations, you can calculate the weighted average cost of capital based on your expected return on equity. Let's use ConocoPhillips as an example.

In order to calculate performance as accurately as possible, the time weighted subperiods are calculated at the end of each trading day. Don't worry, I have an example to show you step by step.

How to calculate time-weighted return. ... While calculating TWR manually can be too much for individual investors, that doesn’t mean it isn’t a useful metric.

Now, let's say that Apple releases some incredibly positive news tomorrow, and its shares jump by 20%, or to $113.62. This would raise the price-weighted average to $64.53, a 10.8% jump.