Common Stock Price Range Calculation - CFA® Level 1 Exam Preparation

Range Calculation for Common Stock Prices

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Question

The closing prices of a common stock have been 61 1/2, 62, 61 1/4, 60 7/8, and 61 1/2 for the past week. What is the range?

Answers

Explanations

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A. B. C. D. E.

E

62 - 60.875 = 1.125

To find the range of a set of values, we need to calculate the difference between the highest and lowest values in the set. In this case, the closing prices of the common stock for the past week are given as:

61 1/2, 62, 61 1/4, 60 7/8, 61 1/2

To calculate the range, we need to find the highest and lowest values among these closing prices.

The highest value is 62, and the lowest value is 60 7/8.

To compare these two values, we can convert the fraction 7/8 to a decimal. To do that, we divide 7 by 8:

7 ÷ 8 = 0.875

Now we have the decimal value for 60 7/8, which is 60.875.

So, the highest value is 62, and the lowest value is 60.875.

To find the range, we subtract the lowest value from the highest value:

62 - 60.875 = 1.125

Therefore, the range of the closing prices of the common stock for the past week is $1.125.

Hence, the correct answer is option E: $1.125.