A NOTE ON THE HIGH-LOW PRICE AVERAGE AS AN ESTIMATOR OF ANNUAL AVERAGE STOCK PRICES.

How closely do averages of yearly high-low prices of common stocks approximate average prices of the stocks throughout the year? Numerous occasions may arise in the conduct of empirical investigations involving price relationships in which the high-low average calculation would be a convenient substitute for the "true" average of price throughout the year, provided no systematic and significant difference exists between the results of the two methods in arriving at average prices. The extent of the differences between the above two averages of price is examined in this paper for a collection of companies first as an aggregate and then individually. [ABSTRACT FROM AUTHOR]