Use the information for the question(s) below.
An exchange traded fund (ETF) is a security that represents a portfolio of individual stocks. Consider an ETF for which each share represents a portfolio of two shares of International Business Machines (IBM), three shares of Merck (MRK), and three shares of Citigroup Inc. (C). Suppose the current market price of each individual stock are shown below:

-The price per share of the ETF in a normal market is closest to:
A) $168.00
B) $336.00
C) $424.50
D) $504.00

Question

Use the information for the question(s) below.
An exchange traded fund (ETF) is a security that represents a portfolio of individual stocks. Consider an ETF for which each share represents a portfolio of two shares of International Business Machines (IBM), three shares of Merck (MRK), and three shares of Citigroup Inc. (C). Suppose the current market price of each individual stock are shown below:
 
-The price per share of the ETF in a normal market is closest to:
A) $168.00 
B) $336.00 
C) $424.50 
D) $504.00

Quizplus · Accepted Answer

C) 2 × 79.50 + 3 × 40.00 + 3 × 48.50 = $424.50

Use the Information for the Question(s) Below