The Dow Jones Industrial Average is calculated using
A) value weighting.
B) price relative method.
C) price weighting.
D) equal weighting.

Question

Quizplus · Accepted Answer

The Dow Jones Industrial Average is calculated using price weighting, which means the index is determined by the price of each component stock, rather than the total market value. As such, stocks with higher prices have a greater impact on the index, regardless of their market capitalization.

The Dow Jones Industrial Average Is Calculated Using