1. Good post? |

## Bb

1) if \$4,500 was invested in a bond fund when the price per share was \$9 and \$3000 was invested in the fund when the price per share was \$10, what was the average (AM) price per share purchased?

1)\$9.625
2)\$9.50
3)\$9.40
4)\$9.375---- ans
5)\$9.20

2. Good post? |
\$4,500 at 9\$/share means you can buy 500 shares. \$3000 at 10\$/share means you can buy 300 shares. Therefore, average price per share is (4,500 + 3000)/(500 + 300).
=> 7500/800=9.375

3. Good post? |
Originally Posted by gre123
1) if \$4,500 was invested in a bond fund when the price per share was \$9 and \$3000 was invested in the fund when the price per share was \$10, what was the average (AM) price per share purchased?

1)\$9.625
2)\$9.50
3)\$9.40
4)\$9.375---- ans
5)\$9.20

No of shares of \$9=500
No of shares of \$10=300
Average=(500*9+300*10)/800=9.375

4. Good post? |
thank u finita and aster

5. Good post? |
These kind of sums which ask for weighted average get repeated very often. I have seen sum of them in PP as well as in this forum. So be clear with the concept guys.

There are currently 1 users browsing this thread. (0 members and 1 guests)

#### Posting Permissions

• You may not post new threads
• You may not post replies
• You may not post attachments
• You may not edit your posts
•

SEO by vBSEO ©2010, Crawlability, Inc.