Question

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 index and dividing by 30

Answer 1

43)

Currently, Dow Jones Industrial Average is computed by b) adding the prices of 30 large "blue-chip" stocks and dividing by a divisor adjusted for stock splits and large stock dividends.

(Note: This is just the method of calculation. No further calculation required.)