Which of the Following Statements Regarding the Dow Jones Industrial

question 83

Multiple Choice

Which of the following statements regarding the Dow Jones Industrial Average (DJIA) is false?

• A) The DJIA is not very representative of the market as a whole.
• B) The DJIA consists of 30 blue chip stocks.
• C) The DJIA is affected equally by changes in low- and high-priced stocks.
• D) The DJIA divisor needs to be adjusted for stock splits.
• E) The value of the DJIA is much higher than individual stock prices.

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Definitions:

Glass Cliff

A phenomenon where women or minority group members are more likely to be promoted to leadership positions during times of crisis or organizational instability, which may set them up for failure.

Leadership Positions

Roles or titles within an organization that entail guiding, directing, or influencing others.

Women

Female humans; also refers to issues, concepts, and perspectives related to femininity or the female gender.

Uncertainty Avoidance

A cultural dimension that describes the degree to which societies are willing to tolerate uncertainty and ambiguity.