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.

Question

Quizplus · Accepted Answer

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.

Which of the Following Is True of the Dow Jones