Excel
All Top 50 Excel & Business Modeling Questions#14
Calculating Weighted Average Cost of Capital (WACC) with SUMPRODUCT
MediumJPMorgan ChaseInterview Question #14
Asked at JPMorgan ChaseYou have an investment portfolio table in `A2:C6` where Column A is Asset Class, Column B is Invested Capital ($), and Column C is Expected Return (%). Write a formula in `E2` to compute the overall portfolio weighted average return without adding any helper columns.
Input Table: Portfolio (A1:C4)
3 rows preview| Asset Class (Col A) | Invested Capital (Col B) | Return % (Col C) |
|---|---|---|
| US Equities | 500000 | 0.1 |
| Fixed Income | 300000 | 0.04 |
| Real Estate | 200000 | 0.08 |
Expected Output Structure1 rows
| Total Portfolio | Weighted Return (E2) |
|---|---|
| 1000000 | 0.078 |
Interview Context
Asked frequently in data analyst and business analyst technical rounds. Focus on clean filtering, optimal indexing usage, and unambiguous column selection.
Microsoft Excel 365
E2fx
| A | B | C | D | E | F | |
|---|---|---|---|---|---|---|
| 1 | Asset Class (Col A) | Invested Capital (Col B) | Return % (Col C) | |||
| 2 | US Equities | 500000 | 0.1 | Target [Enter Formula] | ||
| 3 | Fixed Income | 300000 | 0.04 | |||
| 4 | Real Estate | 200000 | 0.08 | |||
| 5 | ||||||
| 6 | ||||||
| 7 |
Click on target cell E2 and enter your formula above.Shortcut: Click "Load Solution" to inspect