A stockbroker placed the following order for a customer:
• 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
What is the weighted arithmetic mean price per share?
A)$25.25
B)$79.75
C)$103.50
D)$46.51

Question

Quizplus · Accepted Answer

The weighted arithmetic mean price per share is calculated by dividing the total cost of all shares by the total number of shares. For Kaiser Aluminum: 50 shares * $104 = $5200. For GTE: 100 shares * $25.25 = $2525. For Boston Edison: 20 shares * $9.125 = $182.5. Total cost = $5200 + $2525 + $182.5 = $7907.5. Total shares = 50 + 100 + 20 = 170. Weighted mean = $7907.5 / 170 = $46.51.

A Stockbroker Placed the Following Order for a Customer