Question

Your stockbroker executed the following trades for your account: • 50 shares of Kaiser Aluminum at $104 a share • 100 shares of GTE at $25.25 a share • 20 shares of Boston Edison at $9.125 a share Based on this information, the weighted arithmetic mean price per share is?

Answer 1

Answer:

$46.51

Explanation:

The weighted arithmetic mean can be defined as:

$M = \frac{n1P1 + n2P2 +n3P3}{n1 +n2+n3}$

Where n is the number of shares and P is the share price, then:

$M= \frac{50*104 + 100*25.25+ 20*9.125}{50+100+20} \\ M= \frac{7907.5}{170}\\M= 46.514$

Based on this, the weighted arithmetic mean price per share is $46.51