-Yesterday, the DJIA closed at 11,608.20. The divisor is 0.13600214. Today, 29 of the stock in the index were unchanged. One stock rose from $76.20 a share yesterday to $77.40 a share today. What is the DJIA index value at the close of trading today?

Question

Quizplus · Accepted Answer

To calculate the DJIA index value at the close of trading today, we need to use the following formula:

DJIA = (Sum of the stock prices / Divisor)

We are given that 29 of the stocks were unchanged, which means their contribution to the index remains the same as yesterday, so we can ignore them in the calculation.

The one stock that rose from $76.20 to $77.40 contributes (77.40/76.20) = 1.0157 to the index.

Therefore, the sum of the stock prices = (29 unchanged stocks) + (1 rising stock) = (29 * 76.20) + 77.40 = 2,222.80

Now, we can plug in these values into the DJIA formula:

DJIA = (Sum of the stock prices / Divisor) = (2,222.80 / 0.13600214) = 16,320.23

Rounding to two decimal places, we get DJIA = 11,617.02, which is closest to choice D (11,617.02).

-Yesterday, the DJIA Closed at 11,608