Question

1. Over the six months what was the average market price per share?

Answer 1

A) The average market price is (12 + 8 + 10 + 13 + 14 + 8) / 6 = $10.83

b) The total amount spent was: 12*8 + 8*12 + 10*10 + 13*7 + 14*7 + 8*12 = $577. The total number of shares was: 8 + 12 + 10 + 7 + 7 + 12 = 56. Therefore the average price per share was $577 / 56 shares = $10.30/share.
c) Since the cost per share in June was $12, and her average cost was $10.30, dollar-cost averaging worked in her favor since her average cost was lower.