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 having the greatest amount of debt in its capital structure.
C)The stock having the greatest amount of equity in its capital structure.
D)The stock having the lowest volatility.
E)None of the above.

Question

Quizplus · Accepted Answer

The stock trading at the highest dollar price per share will have the greatest impact on the DJIA because the DJIA is a price-weighted index, meaning that stocks with higher prices have more influence on the index's movements.

If the Market Prices of Each of the 30 Stocks