A Price Weighted Average Consists of Three Stocks

question 26

Multiple Choice

A price weighted average consists of three stocks. On day one their prices are: A at $25, B at $18, C at $30. On day two the prices are: A at $27, B at $16, C at $11, but C had a 3 for 1 split. The averages for the two days are

• A) 26.67, 15.56.
• B) 24.33, 25.33.
• C) 26.67, 25.33
• D) 24.33, 18.

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Definitions:

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