Which of the Following Is True of the Dow Jones

question 71

Multiple Choice

Which of the following is true of the Dow Jones Industrial Average?

• A)It is a value-weighted average of 30 large industrial stocks.
• B)It is a price-weighted average of 30 large industrial stocks.
• C)The divisor must be adjusted for stock splits.
• D)A and C.
• E)B and C.

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Definitions:

Diminishing Marginal Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, starts to decrease.

Per-worker Production Functions

The relationship between the amount of output produced per worker and the amount of inputs used per worker.

Slopes

In mathematics, it represents the steepness or incline of a line, indicating the rate at which it rises or falls.

Diminishing Marginal Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other inputs remain constant.