A portfolio manager invests EUR5,000 annually in a security for four years at the following prices: The

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A portfolio manager invests EUR5,000 annually in a security for four years at the following prices:

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The average price is best represented as the:
A. harmonic mean of EUR76.48.
B. geometric mean of EUR77.26.
C. arithmetic average of EUR78.00.

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2024 CFA Program Curriculum Level I Volume 1

ISBN: 9781953337672

1st Edition

Authors: CFA Institute

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Question Posted: Feb 01, 2024 08:30 AM

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A portfolio manager invests EUR5,000 annually in a security for four years at the following prices: The

Question:

Exhibit 1: Five-Year Purchase Prices Year Year 1 Year 2 Year 3 Year 4 Purchase Price (euros per unit) 62.00 76.00 84.00 90.00

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A is correct The harmonic mean is appropriate for ...View the full answer

2024 CFA Program Curriculum Level I Volume 1

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