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The Dow Jones Industrial Average

Question 1

Multiple Choice

The Dow Jones Industrial Average:


A) gives equal weight to a change in the price of the stock of any company in the index.
B) reflects that a 10% increase in a share of stock selling for $30 will have the same effect on the index as a 10% increase in the price of a stock selling for $60.
C) is a value-weighted index.
D) gives greater weight to shares with higher prices.

Correct Answer:

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