Yesterday, the DJIA closed at 12,309.16. The divisor is .123017848. Today, every one of the stocks in the index increased in value by $.40 a share. What is the value of today's closing DJIA?
A)12,309.16
B)12,406.71
C)12,442.23
D)12,564.38
E)12,571.02

Question

Quizplus · Accepted Answer

The Dow Jones Industrial Average (DJIA) is calculated by summing the prices of the 30 stocks and dividing by a divisor. If each stock increased by $.40, the total increase is 30 * $.40 = $12. To find the increase in the index, divide the total increase by the divisor: $12 / .123017848 = 97.55. Adding this to the previous close gives 12,309.16 + 97.55 = 12,406.71.

Yesterday, the DJIA Closed at 12,309