Which of the Following Is True of the Dow Jones

question 49

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) It is a value-weighted average of 30 large industrial stocks, and the divisor must be adjusted for stock splits.
• E) It is a price-weighted average of 30 large industrial stocks, and the divisor must be adjusted for stock splits. The Dow Jones Industrial Average is a price-weighted index of 30 large industrial firms, and the divisor must be adjusted when any of the stocks on the index split.

---

Definitions:

Ethnic Minority

A group within a community which possesses different national or cultural traditions from the majority population.

True Ability Levels

refer to an individual's actual skills, knowledge, or competencies, which can be contrasted with measured or perceived abilities.

Social Exchange Theory

Individuals who are treated favourably by others feel obliged to reciprocate by responding positively and returning that favourable treatment in some manner.

Leader-member Exchange (LMX)

A theory centered around the relationship between leaders and their followers, emphasizing the dyadic connections that influence performance and job satisfaction.