Question

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 name the company that entered the Dow Jones Industrial Average at that time (e) Which index is generally used to track the Paris, France, stock market? (f) Which index is generally used to track the London, England, stock market?

Answer 1

Answering the first four parts as HOMEWORKLIB policy

Answer A: Dow Jones Industrial Average is the stock market index indicating the value of 30 large USA companies which are publicly owned and listed. It shows their trading during the various period in time.

Answer B: There are 30 companies in Dow jones Industrial Average (DJIA)

Answer C: the five companies which are components of DJIA are – American Express, MMM, Apple, Boeing and Caterpillar.

Answer D: In the change that happened in June 2018, General Electric company was replaced by Walgreens Boots Alliance, Inc.