If the Average Cost of a Stock Is $91

question 3

Multiple Choice

If the average cost of a stock is $91.86 as determined by dollar cost averaging,which of the following is true?

• A)You would lose money only if you sold your stock at less than $91.86.
• B)You would gain money only if you sold your stock at less than $91.86.
• C)You would lose money only if you purchased additional stock at greater than $91.86.
• D)You would gain money only if you purchased additional stock at greater than $91.86.
• E)You would not lose nor gain money regardless of the average cost of the stock.

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Definitions:

Board of Directors

A group of individuals elected to represent shareholders and govern the organization by establishing policies and making decisions on major company issues.