Question

A stockbroker placed the following order for a customer:

• 50 shares of Kaiser Aluminum preferred at $100 a share
• 100 shares of GTE preferred at $27.20 a share
• 20 shares of Boston Edison preferred at $12.20 a share

What is the weighted arithmetic mean price per share?
$99.50
$46.85
$67.19
$27.20

Answer 1

(50*100 + 100*27.20+ 20*12.20)/(50+ 100+20) =

$7964/170
= $46.85

Answer 2

(50*100 + 100*27.20+ 20*12.20)/(50+ 100+20) =

$7964/170
= $46.85