To calculate the average price per share at which the investor bought the shares, we need to use the weighted average price. This method takes into account the number of shares bought at each price.

Formula:

$\text{Weighted Average Price} = \frac{(P_1 \times N_1) + (P_2 \times N_2) + (P_3 \times N_3)}{N_1 + N_2 + N_3}$

Where:

• $P_1$, $P_2$, and $P_3$ are the prices per share for the three purchases.
• $N_1$, $N_2$, and $N_3$ are the number of shares purchased at those prices.

Given Data:

• January: $P_1 = 19.58$, $N_1 = 115$
• July: $P_2 = 24.06$, $N_2 = 125$
• December: $P_3 = 29.54$, $N_3 = 95$

Calculation:

$\text{Weighted Average Price} = \frac{(19.58 \times 115) + (24.06 \times 125) + (29.54 \times 95)}{115 + 125 + 95}$

Now, let's compute that.

$\text{Weighted Average Price} = \frac{(2241.7) + (3007.5) + (2807.3)}{335} = \frac{8056.5}{335} \approx 24.05$

Final Answer:

The average price per share at which the investor bought the shares is approximately $24.05.

Would you like more details or have any questions?

Related Questions:

1. How would the average price change if the investor bought more shares in July?
2. What is the total amount the investor spent on these shares?
3. If the investor sold all shares at $30 each, what would be their profit?
4. How would the average price be affected if the prices had dropped in December?
5. How can changes in share volume affect the overall investment strategy?

Tip:

When averaging prices over multiple transactions, always account for the number of shares bought at each price to get an accurate weighted average.