How Many Stock Prices Are Used to Compute the Dow

question 170

Multiple Choice

How many stock prices are used to compute the Dow Jones Industrial Average?

• A)30 major U.S. corporations
• B)100 major U.S. corporations
• C)500 representative U.S. corporations
• D)1000 representative U.S. corporations

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Definitions:

Cash Flow Growth Rate

The rate at which a company's cash flow from operations grows over a specific period, reflecting its financial performance and stability.

Rental Property

Real estate property that is leased or rented out to tenants, generating income for the owner.

Return Requirement

The minimum expected rate of return necessary for an investment to be considered worthwhile by an investor, reflecting the risk level.

Annual Cash Flows

The total amount of money being transferred into and out of a business over the course of a year, indicative of its operational efficiency and profitability.