A stockbroker placed the following order for a customer:
*50 shares of Kaiser Aluminum preferred at $104 a share
* 100 shares of GTE preferred at $25.25 a share
* 20 shares of Boston Edison preferred at $9.125 a share
What is the weighted arithmetic mean price per share?
A) $25.25
B) $79.75
C) $103.50
D) $46.51

Question

A stockbroker placed the following order for a customer: 
*50 shares of Kaiser Aluminum preferred at $104 a share
* 100 shares of GTE preferred at $25.25 a share
* 20 shares of Boston Edison preferred at $9.125 a share
What is the weighted arithmetic mean price per share?
A) $25.25
B) $79.75
C) $103.50
D) $46.51

Quizplus · Accepted Answer

The weighted arithmetic mean price per share is calculated by multiplying each stock's price by the number of shares, summing these products, and then dividing by the total number of shares: [(50*$104) + (100*$25.25) + (20*$9.125)] / (50+100+20) = $46.51.

A Stockbroker Placed the Following Order for a Customer