# Thread: Averaging Percentages - correct way to average a ratio?

1. ## Averaging Percentages - correct way to average a ratio?

What is the correct way to average a ratio? First average each variable, then calculate the ratio/percentage? Does it matter, what are the implications? Thanks

2. Rates don't usually get averaged. Without specific information, I'm afraid it's going to be difficult to give a specific answer. Sorry!

3. Here is an example:

variables:

ratio:
realized price as a % of market price

so if you had monthly data for the variables - could you simply average the ratio through the time series? or do you need to average the variables before calculating the average ratio?

4. ? anyone ?