Which of the Following Is NOT a Characteristic of the Dow

question 7

Multiple Choice

Which of the following is NOT a characteristic of the Dow Jones Industrial Average?

• A)It includes only very high quality common stock
• B)It generally follows the trend of the market
• C)The companies included,comprise over 25 percent of the companies listed on the New York Stock Exchange
• D)It is a value weighted average
• E)Dividends require adjustments to the divisor

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Definitions:

Funds

Financial resources that are set aside for a specific purpose or investment, including both publicly traded funds and private investments.

Corporate Tax Liability

Corporate tax liability is the total amount of tax that a corporation is legally obligated to pay to the government based on its taxable income.

Capital Structure

The mix of a company’s long-term debt, specific short-term debt, common equity, and preferred equity, which determines its financial leverage.