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) a and c.
E) b and c.

Question

Quizplus · Accepted Answer

The Dow Jones Industrial Average (DJIA) is a price-weighted index, meaning it is calculated based on the price of its 30 component stocks. The divisor is adjusted for stock splits to maintain the continuity of the index.

Which of the Following Is True of the Dow Jones