Buy 100 shares of A, effective spread $0.1 Buy 900 shares of A, effective spread $0.15 What is the average effective spread of the purchases?
.145
just average I would say .125 unless specfically says weighted average.
hmm…did I exhibit Overconfidence bias by jumping to conclusion?
s23dino Wrote: ------------------------------------------------------- > just average I would say .125 unless specfically > says weighted average. Correct. Average is a simple average in this case. Weighted average would be 0.145
I don’t know but I remember a schweser question that asked for average and then weighted average, I can’t imagine CFAI asking for average and then presenting the answer as a weighted average.
look at example 1, v5, pp290-291, it is very clear
Sticky what is it?
Schweser (Q19.1, Exam 1 pm, Vol 2) says it’s just the average, ie (0.1+0.15)/2 = 0.125 I am a bit skeptical with this so am asking. Alright, just simple average then.