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.

A、 Stock
B、 Number of Shares
C、 Initial Cost
D、 Current Cost
E、 A
F、 100
G、 5.00
H、 5.00
I、 B
J、 1000
K、 10.00
L、 12.50
M、 C
N、 500
O、 7.50
P、 10.00
Q、 D
R、 1500
S、 5.00
T、 8.00

【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