Which of the Following Is an Advantage of the Dow

question 144

Multiple Choice

Which of the following is an advantage of the Dow Jones Industrial Average (the Dow) ?

• A) It provides historical data all the way back to 1896.
• B) It weighs the stock prices by the market value rather than by only the price of the stock.
• C) It tracks over 500 companies,making it a broad representation of the stock market.
• D) It resets on January 1 of every year to the value of 10,000 to make it easy to track.
• E) It includes both stocks and bonds in its weighting.

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Definitions:

Bonds

The connections with family, friends, and others who have a similar cultural background or ethnicity.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.

Net Worth

The total value of an individual's or entity's assets minus liabilities, indicating financial health or status.

Financial Performance

An assessment of a company's ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period.