If the Market Prices of Each of the 30 Stocks

question 44

Multiple Choice

If the market prices of each of the 30 stocks in the Dow Jones Industrial Average (DJIA) all change by the same percentage amount during a given day,which stock will have the greatest impact on the DJIA?

• A) The stock trading at the highest dollar price per share.
• B) The stock with total equity has the higher market value.
• C) The stock having the greatest amount of equity in its capital structure.
• D) The stock having the lowest volatility.
• E) All will have an equal impact.

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Definitions:

Durable Goods

Products that are not consumed or destroyed in use and thus have a long life-span, such as cars and appliances.

Marketing Actions

Specific steps or strategies undertaken by companies to promote and sell products or services to target audiences.

New Product Development

A process used by companies to conceptualize, design, develop, and finally launch a new product in the market.

Nondurable Good

A product that is consumed or has a short life span, typically less than three years, such as food, fuel, or paper products.