The Dow Jones Industrial Average (DJIA) Is Computed by

question 67

Multiple Choice

The Dow Jones Industrial Average (DJIA) is computed by

• A) adding the prices of 30 large "blue-chip" stocks and dividing by 30.
• B) calculating the total market value of the 30 firms in the index and dividing by 30.
• C) adding the prices of the 30 stocks in the index and dividing by a divisor.
• D) adding the prices of the 500 stocks in the index and dividing by a divisor.
• E) adding the prices of the 30 stocks in the index and dividing by the value of these stocks as of some base date period.

Analyze the impact of different compounding frequencies on investment returns and loan costs.

Determine the value of cash flows occurring at different time periods using appropriate discount rates.

Solve problems related to growing annuities and perpetuities to evaluate long-term investments.

Understand and apply the concept of net requirements calculation for products.

---

Definitions:

Raw Sewage

Untreated, unfiltered wastewater containing contaminants such as human waste, industrial runoff, and debris, requiring treatment before being released into the environment.

Shellfish Contamination

refers to the pollution or harmful contamination of shellfish (such as oysters, clams, and mussels) by pollutants including chemicals, heavy metals, and pathogenic microorganisms which can render them unsafe for human consumption.

Respiratory Irritation

The discomfort or inflammation of the respiratory tract, often caused by pollutants, allergens, or pathogens, leading to symptoms like coughing or difficulty breathing.

Excess Nitrogen

An overabundance of nitrogen in the environment, often resulting from agricultural fertilizers, which can lead to water pollution and ecosystem imbalances.