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:

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