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

$46.51

Step-by-step explanation:

The weighted arithmetic mean can be defined as:

`M = (n1P1 + n2P2 +n3P3)/(n1 +n2+n3)`

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

`M= (50*104 + 100*25.25+ 20*9.125)/(50+100+20) \\ M= (7907.5)/(170)\\M= 46.514`

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