Homework Answers
1.Each stock of the dow jones change by same percentage amount,The stock will have greatest impact will be-
(C)The stock having the greatest amount of equity in its capital structure or we can say the highest weighted stock in the DJIA.
2..Each stock of the dow jones change by same absolute amount in given day,The stock will have greatest impact will be-
(D) The stock having lowest volatility as after considering the weights , it will impact more than those having high volatility.
3. NO, it would not change for BIST 100 as it is also a price weighted index similar as DJIA100, So, answer in both cases would be same.
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09 - If the market prices of each of the 100 stocks in the Dow Jones...
If the market prices of the 30 stocks in the Dow Jones Industrial Average all change...
If the market prices of the 30 stocks in the Dow Jones Industrial Average all change by the same dollar amount on a given day (ignoring the stock splits), which stock will have the greatest impact on the average? Explain why?
6. Consider that all of the stocks in the Dow Jones Industrials were changed for the...
6. Consider that all of the stocks in the Dow Jones Industrials were changed for the day except Apple Computer rose four points ($4 per share). What would be the change in the Dow Jones Industrial Average for the day? A. Less than 5 points B. 5 to 10 points C. 10 to 15 points D. 15 to 20 points E. More than 20 points >>>
43) Currently, the Dow Jones Industrial Average is computed by A) adding the prices of 30...
43) Currently, the Dow Jones Industrial Average is computed by A) adding the prices of 30 large "blue-chip" stocks and dividing by 30 B) adding the prices of 30 large "blue-chip" stocks and dividing by a divisor adjusted for stock splits and large stock dividends C) measuring the current total market value of the 30 stocks in the index relative to the total value on the previous day D) calculating the total market value of the 30 firms in the...
Problem 1.3 (5 points each) (a) What is the "Dow Jones Industrial Average"? (b) How many...
Problem 1.3 (5 points each) (a) What is the "Dow Jones Industrial Average"? (b) How many companies make up the Dow Jones Industrial Average? (c) Name five of the companies that are components of the Dow Jones Industrial Average. (d) Since its inception in 1896, the list of companies making up the Dow Jones Industrial Average has changed 51 times. The latest change occurred in June 2018. Name the company that was removed from the Dow Jones Industrial Average and...
Currently, the Dow Jones Industrial Average is computed by Multiple Choice 0 adding the prices of...
Currently, the Dow Jones Industrial Average is computed by Multiple Choice 0 adding the prices of 30 large "blue-chip" stocks and dividing by 30 0 calculating the total market value of the 30 firms in the index and dividing by 30 0 measuring the current total market value of the 30 stocks in the index relative to the total value on the previous day 0 adding the prices of 30 large 'blue-chip stocks and dividing by a divisor adjusted for...
Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer...
Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day. A sample of 73 stocks...
} 1 2. a) The largest single day point loss of the Dow Jones Industrial Average...
} 1 2. a) The largest single day point loss of the Dow Jones Industrial Average occurred on Sept. 29, 2008, when the market lost 778 points to close at 10,365. What was the percentage change? b) The largest single day percentage loss of the Dow Jones Industrial Average occurred on Oct. 19, 1987, when the market closed down 22.6% at 1739. What was the point change ? CO
3. A sample of 1000 stock market trading days was taken. The following table shows the directions...
3. A sample of 1000 stock market trading days was taken. The following table shows the directions (up or down) of the Dow Jones Industrial Average (DJIA) and the Hang Seng Index (HSI) on any trading day. For example, DJIA and HSI were up together on 215 trading days in the sample, etc. Stock Market Directions HSI Up Down |Total Up 215320535 DJIADown70395465 Total2857151000 (a) What is the risk of HSI going down when DJIA is down? (b) What is...
30. The Dow Jones Industrial Average is: A. the most representative of the stock market indexes...
30. The Dow Jones Industrial Average is: A. the most representative of the stock market indexes B. an index of 500 largest corporate stocks in America. C. an index of 30 major industrial stocks. D. an equally weighted index of al stocks traded on the New York Stock Exchange. III. Applications (50 points, 10 points each) 1. Fritz and Frieda went to business school together 10 years ago. They have just been hired by a midsized corporation that wants to...
Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer...
Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day. A sample of 66 stocks...
6. Consider that all of the stocks in the Dow Jones Industrials were changed for the day except Apple Computer rose four points ($4 per share). What would be the change in the Dow Jones Industrial Average for the day? A. Less than 5 points B. 5 to 10 points C. 10 to 15 points D. 15 to 20 points E. More than 20 points >>>
43) Currently, the Dow Jones Industrial Average is computed by A) adding the prices of 30 large "blue-chip" stocks and dividing by 30 B) adding the prices of 30 large "blue-chip" stocks and dividing by a divisor adjusted for stock splits and large stock dividends C) measuring the current total market value of the 30 stocks in the index relative to the total value on the previous day D) calculating the total market value of the 30 firms in the...
Problem 1.3 (5 points each) (a) What is the "Dow Jones Industrial Average"? (b) How many companies make up the Dow Jones Industrial Average? (c) Name five of the companies that are components of the Dow Jones Industrial Average. (d) Since its inception in 1896, the list of companies making up the Dow Jones Industrial Average has changed 51 times. The latest change occurred in June 2018. Name the company that was removed from the Dow Jones Industrial Average and...
Currently, the Dow Jones Industrial Average is computed by Multiple Choice 0 adding the prices of 30 large "blue-chip" stocks and dividing by 30 0 calculating the total market value of the 30 firms in the index and dividing by 30 0 measuring the current total market value of the 30 stocks in the index relative to the total value on the previous day 0 adding the prices of 30 large 'blue-chip stocks and dividing by a divisor adjusted for...
} 1 2. a) The largest single day point loss of the Dow Jones Industrial Average occurred on Sept. 29, 2008, when the market lost 778 points to close at 10,365. What was the percentage change? b) The largest single day percentage loss of the Dow Jones Industrial Average occurred on Oct. 19, 1987, when the market closed down 22.6% at 1739. What was the point change ? CO
3. A sample of 1000 stock market trading days was taken. The following table shows the directions (up or down) of the Dow Jones Industrial Average (DJIA) and the Hang Seng Index (HSI) on any trading day. For example, DJIA and HSI were up together on 215 trading days in the sample, etc. Stock Market Directions HSI Up Down |Total Up 215320535 DJIADown70395465 Total2857151000 (a) What is the risk of HSI going down when DJIA is down? (b) What is...
30. The Dow Jones Industrial Average is: A. the most representative of the stock market indexes B. an index of 500 largest corporate stocks in America. C. an index of 30 major industrial stocks. D. an equally weighted index of al stocks traded on the New York Stock Exchange. III. Applications (50 points, 10 points each) 1. Fritz and Frieda went to business school together 10 years ago. They have just been hired by a midsized corporation that wants to...
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