- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 3. Statistical Measures of Asset Returns
- Subject 1. Measures of Central Tendency
CFA Practice Question
A stockbroker placed the following order:
100 shares of GTE preferred at $25 1/4 a share
20 shares of Boston Edison preferred at $9 1/8 a share
B. $103.5
C. Neither of these answers
50 shares of Kaiser Aluminum preferred at $104 a share
100 shares of GTE preferred at $25 1/4 a share
20 shares of Boston Edison preferred at $9 1/8 a share
What is the weighted mean price per share?
A. $25.25
B. $103.5
C. Neither of these answers
Correct Answer: C
(50*104)+(100*25.25)+(20*9.125) = 7907.5. The weighted mean is 7907.5/170 = 46.51.
User Contributed Comments 6
| User | Comment |
|---|---|
| 2014 | Good question |
| deliawmx | Why not use all the decimal displays for the price per share? The fractions create confusion. |
| 012905nv | My thought too delia... like we time warped back to the 90's. |
| choas69 | this is super stupid to the point cfa wont think about doint it. because it aint logical. |
| isalya | Even answered right, the fraction got me. thought that one forth of a share costs 25 USD, so 1 share 100 USD |
| EEEEvia | I thought $25 for 1/4 share as well |