单选题
James Investments is calculating an unweighted
(equally-weighted) index on a four stock portfolio. Use the following
information to calculate the value of the index using the geometric and
arithmetic mean.
|
Stock |
Number of Shares |
Initial Cost |
Current Cost |
|
A |
100 |
5.00 |
5.00 |
|
B |
1000 |
10.00 |
12.50 |
|
C |
500 |
7.50 |
10.00 |
|
D |
1500 |
5.00 |
8.00 |
Price using geometric
Price using arithmetic
①A.
1.426
1.295
②B.
1.277
1.379
③C.
1.277
1.295
A. ①B. ②C. ③
【正确答案】
C
【答案解析】First calculate the return relatives and then find the mean of the relatives. The number of shares is irrelevant in this question.
Arithmetic average: 5/5=1; 12.5/10=1.25; 10/7.50=1.33; 8/5=1.60
(1+1.25+1.33+1.60)/4=1.295
Geometric mean: 5/5=1; 12.5/10=1.25; 10/7.50=1.33; 8/5=1.60
(1×1.25×1.33×1.60)1/4=1.277