A change in a high price stock's value has a greater impact on the Dow Jones Industrial Average than a change in a low price stock.

Question

Quizplus · Accepted Answer

The Dow Jones Industrial Average is a price-weighted index, which means that stocks with higher prices have a greater influence on the index than stocks with lower prices. Therefore, a change in a high price stock's value will have a greater impact on the index than a change in a low price stock.

A Change in a High Price Stock's Value Has a Greater