Which of the Following Is an Advantage of the Dow

question 90

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 very 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:

Fixed Assets

Assets of a long-lasting nature involved in business operations, which are not anticipated to be expended or turned into cash quickly.

Current Assets

Items of value that are projected to be turned into cash, sold off, or consumed either within a year or throughout the length of the business's normal operational cycle, whichever timeframe is greater.

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating its ability to meet short-term obligations.

Office Equipment

Refers to the assets purchased for use in the operation of a business, including computers, printers, and furniture.