Daily Share Price Variability (SPV) is defined as (Day&rsquo;s high price - Day&rsquo;s low price) / (Average of the openingand closing prices during the day). Which among the shares A, C, D and F had the highest SPV on that day?

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Question :

Daily Share Price Variability (SPV) is defined as (Day’s high price - Day’s low price) / (Average of the opening
and closing prices during the day). Which among the shares A, C, D and F had the highest SPV on that day?

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0 3

A.
F
B.
A
C.
D
D.
C

Option C is the correct answer.

Explanatory Answer

We are given that, Daily Share Price Variability (SPV) is defined as (Day’s high price - Day’s low price) / (Average
of the opening and closing prices during the day)
Calculating it for the four options,
Stock F: 800/1700=8/17
Stock A: 1200/2000=3/5
Stock D: 900/750=90/75=6/5
Stock C: 600/1000=3/5
Clearly Stock D has the highest SPV.