Assume the DJIA closed at 15,150 last night. The divisor is .123017848. Assume that 29 of the stocks in the index were unchanged today. One stock increased in value from $44.80 a share yesterday to $47.90 a share today. What is the DJIA index value at the close of trading today?
A)15,175.20
B)15,208.30
C)15,365.60
D)15,412.20
E)15,524.10

Question

Quizplus · Accepted Answer

The correct answer is A.The DJIA is calculated by dividing the sum of the prices of the 30 stocks in the index by the divisor. Since 29 of the stocks were unchanged today, the change in the DJIA is due to the one stock that increased in value. The change in the price of the one stock is $47.90 - $44.80 = $3.10. The change in the DJIA is $3.10 / .123017848 = 25.20. The DJIA index value at the close of trading today is 15,150 + 25.20 = 15,175.20.

Assume the DJIA Closed at 15,150 Last Night