What do the highest stock price and the lowest stock price over the previous year indicate?

Question

Quizplus · Accepted Answer

The highest and lowest stock prices over the previous year indicate how volatile the stock's market price has been. This information can be used to assess the risk associated with the stock or the potential for future price fluctuations. Adding them together and dividing by two does not give the current market price, as stock prices can change rapidly based on many factors. The price-earnings ratio is a different metric that relates to the relationship between the stock price and the company's earnings. The highest and lowest stock prices do not generate the dividend yield, which is based on the company's dividend payments relative to its stock price.

What Do the Highest Stock Price and the Lowest Stock