You are given the following information concerning three stocks. Stock Price Shares Outstanding A $30 1,000,000 B

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You are given the following information concerning three stocks.

Stock Price Shares Outstanding A $30 1,000,000 B $25 8,000,000 C $20 5,000,000

a) Construct a value-weighted average and a geometric average.

b) A year later, stock A is selling for $25, stock B is selling for $30, and stock C continues to trade for $20. What happens to the two aggregate measures of stock prices? Why are the changes in the measures different?

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Investments An Introduction

ISBN: 9781133936527

11th Edition

Authors: Herbert B Mayo

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Question Posted: Jul 22, 2024 12:00 PM

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You are given the following information concerning three stocks. Stock Price Shares Outstanding A $30 1,000,000 B

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Investments An Introduction

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