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10. Market-capitalization method indexes are generally viewed as superior to price-weighted indexes. Despite that, the DJIA still has a very strong following and is often

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10. Market-capitalization method indexes are generally viewed as superior to price-weighted indexes. Despite that, the DJIA still has a very strong following and is often used to discuss the financial health of the US economy. Why do you think this is? 11. While generally considered superior to price-weighted indexes, market-capitalization indexes do not come without their own issues. What are some of the dangers/drawbacks to such indexes? 12. On June 16, 1995, the DJIA closed at $4,510.79. Assume the index lost 135 points on the next trading day. Compare that to a 500-point loss against the current level of the DJIA. Which occurrence would be more impactful? (find the percent change in the index on each day before answering) cormpared 13 what does your answer from #12 tell you about point movements on indexes to percent changes? 14. Which index is the best metric? Explain why 15. Do you think too much, too little, or the right amount of attention is paid to stock financial indexes? Why? Can you think of a better metric that would better gauge the health of the US economy

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