If the market prices of each of the 30 stocks in the Dow Jones Industrial Average (DJIA)all change by the same percentage amount during a given day,which stock will have the greatest impact on the DJIA?
A) The stock trading at the highest dollar price per share.
B) The stock with total equity has the higher market value.
C) The stock having the greatest amount of equity in its capital structure.
D) The stock having the lowest volatility.
E) All will have an equal impact.

Question

Quizplus · Accepted Answer

The stock trading at the highest dollar price per share will have the greatest impact on the DJIA because the index is price-weighted, meaning that stocks with higher prices have a greater impact on the overall value of the index.

If the Market Prices of Each of the 30 Stocks