You own 100 shares of A, 200 shares of B, 300 shares of C. Their closing prices are: A at $22, B at $15, C at $60. If the average is price weighted, the average is

Question

Quizplus · Accepted Answer

To calculate the price-weighted average, we need to sum the products of the share prices and the number of shares for each stock, and then divide by the total number of shares (100 + 200 + 300 = 600).

For stock A: 100 shares * $50/share = $5000 
For stock B: 200 shares * $35/share = $7000 
For stock C: 300 shares * $20/share = $6000

Total value = $5000 + $7000 + $6000 = $18000

Price-weighted average = $18000/600 = $30

Therefore, the correct option is B, 32.33.

You Own 100 Shares of A, 200 Shares of B