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.

Question

Quizplus · Accepted Answer

I. The Dow Jones Industrial Average is a price-weighted index, meaning stocks with higher prices have a greater impact on the index's movement. III. The DJIA is periodically updated to reflect significant changes in the constituent companies, including mergers and acquisitions.

Which of the Following Statements About the Dow Jones Industrial