Which of the Following Statements About the Dow Jones Industrial

question 62

Multiple Choice

Which of the following statements about the Dow Jones Industrial Average are correct?
I. Higher-priced stocks tend to affect the average more than lower-priced stocks.
II. A one-point change in the DJIA correlates to a $1 change in average share value.
III. Changes in the DJIA are made to reflect company mergers and acquisitions.
IV. The DJIA divisor was determined when the average was created and remains constant.

• A) I and III only
• B) II and IV only
• C) I, III and IV only
• D) I, II, III and IV

---

Definitions:

Energy Consumption

The amount of energy consumed in the form of electricity, gas, or other energy sources by a household, business, or country.

Per Capita

A statistical measure that divides an aggregate by the number of individuals in the population.

Real Income

The purchasing power of income, after adjusting for inflation, indicating the actual quantity of goods or services that can be bought.

Middle-Income

Middle-Income refers to the socioeconomic class of individuals or families whose earnings fall between the upper and lower income brackets.