Question: FOLLOWING ARE DATA ON FIVE STOCKS SELECTED AT RANDOM. PLEASE CALCULATE THE AVERAGES USING THE THREE METHODS DISCUSSED IN CLASS. THE DATES ARE ALL 4/20/21
FOLLOWING ARE DATA ON FIVE STOCKS SELECTED AT RANDOM. PLEASE CALCULATE THE AVERAGES USING THE THREE METHODS DISCUSSED IN CLASS. THE DATES ARE ALL 4/20/21 PRICE/SHARE MARKET CAP. SHARES OUTSTANDING (IN BILLIONS) IN BILLIONS) DELTA AIRLINES $ 46 28.433 0.64 CVS HEALTH $ 75 99.633 1.31 VERIZON $ 59 241.735 4.14 FLEX $ 18 8.933 0.50 BANCO SANTANDER $ 4 59.352 17.31 1 -PRICE-WEIGHTED ARITHMETIC AVERAGE. ADD UP THE PRICES OF ALL THE STOCKS AND DIVIDE BY THE NUMBER OF STOCKS BEING SHOWN. ANSWER: 2-VALUE-WEIGHTED AVERAGE. ADD TOGETHER ALL THE MARKET CAPS. THEN DIVIDE THAT SUM BY THE TOTAL SUM OF SHARES OUTSTANDING ANSWER: 3- GEOMETRIC AVERAGE. 1) MULTIPLY BY EACH OTHER THE PRICES OF THE SHARES. THAT GIVES YOU THE "NUMBER"; 2) THEN TAKE THE "N" ROOT. THE "N" ROOT IS 1/ NUMBER OF STOCKS. THAT GIVES YOU THE "POWER". USE EXCEL FOR THE ANSWER. IN EXCEL, SELECT THE "POWER" FUNCTION, WHERE 1) IS THE "NUMBER" AND 2) IS THE "POWER
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