Which of the following statements is false?
A) The list of stocks that are included in the Dow Jones Industrial Average changes from time to time,and is determined by the editors of the Wall Street Journal.
B) The Dow Jones Industrial Average first appeared on the scene in 1896.
C) When the Dow Jones Industrial Average was first computed,prudent investors bought bonds,not stocks.
D) The Dow Jones Industrial Average is computed by summing the prices of the thirty stocks included in the average and dividing by 30.

Question

Quizplus · Accepted Answer

The Dow Jones Industrial Average is not simply computed by summing the prices of the thirty stocks and dividing by 30. It uses a divisor that is adjusted for stock splits, spin-offs, and other factors, making the calculation more complex than a simple arithmetic mean.

Which of the Following Statements Is False