In October 2015, Goldman Sachs was the highest priced stock in the DJIA and Cisco was the

Question:

In October 2015, Goldman Sachs was the highest priced stock in the DJIA and Cisco was the lowest. The closing price for Goldman Sachs on October 27, 2015, was $186.31, and the closing price for Cisco was $29.05. Suppose the next day the other 29 stock prices remained unchanged and Goldman Sachs increased 5 percent. What would the new DJIA level be? Now assume only Cisco increased by 5 percent. Find the new DJIA level. Use the information from Problem 10 to answer this question.

Data From Problem 10

On October 28, 2015, the DJIA opened at 17,581.43. The divisor at that time was 0.14967727343. Suppose on this day the prices for 29 of the stocks remained unchanged and one stock increased $5.00. What would the DJIA level be at the end of the day?

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...