CFA Practice Question

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CFA Practice Question

A stockbroker placed the following order:

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
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