One Criticism of the Dow Jones Industrial Average Suggests That

question 390

Multiple Choice

One criticism of the Dow Jones Industrial Average suggests that it

• A) magnifies the fluctuations in the stock market.
• B) does not indicate the cause of changes in stock prices.
• C) is too small (too few companies) to get a good statistical representation.
• D) is biased causing an overstatement of bond price increases and an understatement of stock price decreases.

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Definitions:

Active

Engaging or ready to engage in physically energetic pursuits.

Mirror Neurons

Neurons that fire both when an individual acts and when the individual observes the same action performed by another, thought to play a role in learning and empathy.

Simulate

To imitate or replicate the appearance, function, or conditions of (something) for study, training, or analysis.

Observational Learning

The method of learning that occurs through observing the behavior of others and the outcomes of those behaviors.