Question

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 stock splits and large stock dividends

Answer 1

Dow Jones Industrial Average - Computation

Dow Jones Industrial Average or DJIA is calculated by adding up the stock prices of its 30 components and thereby dividing the sum by the Dow Divisor. Dow Divisor is a numerical value which is used for calculating the Dow Jones Industrial Average. The Dow divisor is continuously affected by corporate actions which may be stock splits and dividend payments.

Answer: (D) adding the price of 30 large 'blue-chip stocks'and dividing by a divisor adjusted for stock splits and large stock dividends.