The Dow Jones Industrial Average (DJIA) Is Computed by

question 67

Multiple Choice

The Dow Jones Industrial Average (DJIA) is computed by

• A) adding the prices of 30 large "blue-chip" stocks and dividing by 30.
• B) calculating the total market value of the 30 firms in the index and dividing by 30.
• C) adding the prices of the 30 stocks in the index and dividing by a divisor.
• D) adding the prices of the 500 stocks in the index and dividing by a divisor.
• E) adding the prices of the 30 stocks in the index and dividing by the value of these stocks as of some base date period.

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Definitions:

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