TABLE 3-10
Given below are the closing prices for the Dow Jones Industrial Average (DJIA) and the Standard & Poor's (S&P) 500 Index over 10 weeks.

-Referring to Table 3-10, you will expect an increase in the DJIA to be associated with
A) an increase in the S&P 500 Index.
B) a decrease in the S&P 500 Index.
C) no predictable change in the DJIA.
D) no predictable change in the S&P 500 Index.

Question

TABLE 3-10
Given below are the closing prices for the Dow Jones Industrial Average (DJIA) and the Standard & Poor's (S&P) 500 Index over 10 weeks.
 
-Referring to Table 3-10, you will expect an increase in the DJIA to be associated with
A) an increase in the S&P 500 Index. 
B) a decrease in the S&P 500 Index. 
C) no predictable change in the DJIA. 
D) no predictable change in the S&P 500 Index.

Quizplus · Accepted Answer

The question is asking about the relationship between the DJIA and the S&P 500 Index. Looking at the table, it can be observed that when the DJIA increases, the S&P 500 Index also tends to increase. Therefore, an increase in the DJIA is expected to be associated with an increase in the S&P 500 Index. Therefore, the correct choice is A.