Both General Electric and Goldman Sachs Are Part of the Dow-Jones

question 17

Multiple Choice

Both General Electric and Goldman Sachs are part of the Dow-Jones Industrial Average.If on a given day Goldman Sachs closes at $175 and General Electric at $25

• A)the difference in price will not affect the Average.
• B)the Average will include 7 shares of General Electric for each share of Goldman Sachs.
• C)the effect of each stock on the Average cannot be determined without knowing the number of shares outstanding for each company.
• D)the effect of changes in the price of Goldman Sachs shares will have 7 times the effect on the Average as changes in the price of General Electric.

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