You Own 100 Shares of A, 200 Shares of B

question 45

Multiple Choice

You own 100 shares of A, 200 shares of B, 300 shares of C. Their closing prices are: A at $22, B at $15, C at $60. If the average is price weighted, the average is

• A) 46.12.
• B) 32.33.
• C) 26.67.
• D) 31.50.

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Definitions:

Net Present Value

The discrepancy between the current value of incoming cash and the current value of outgoing cash throughout a given timeframe.

Cash Savings

The amount of money a company or individual keeps on hand that is not invested, spent, or used in paying off debts.

Salvage Value

The estimated value for which an asset can be sold at the end of its useful life, typically used for depreciation calculations.

Internal Rate

Often referred to as the internal rate of return (IRR), it is a financial metric used to estimate the profitability of potential investments.