Which of the Following Statements About the Dow Jones Industrial

question 62

Multiple Choice

Which of the following statements about the Dow Jones Industrial Average are correct?
I. Higher-priced stocks tend to affect the average more than lower-priced stocks.
II. A one-point change in the DJIA correlates to a $1 change in average share value.
III. Changes in the DJIA are made to reflect company mergers and acquisitions.
IV. The DJIA divisor was determined when the average was created and remains constant.

• A) I and III only
• B) II and IV only
• C) I, III and IV only
• D) I, II, III and IV

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