Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that a particular point in time, IBM was the highest priced stock in the DJIA and Alcoa was the lowest. On a particular day,

image text in transcribed

Assume that a particular point in time, IBM was the highest priced stock in the DJIA and Alcoa was the lowest. On a particular day, the DJIA opened at 9,987.45. The divisor at that time was 1323425370. The closing price for IBM the previous day, was $132.54 and the closing price for Alcoa was $13.62. Suppose the next day the other 29 stock prices remained unchanged and IBM increased 4.0 percent. What would the new DJIA level be? Now assume only Alcoa increased by 4.0 percent. Find the new DJIA level. (Round your answers to 2 decimal places.) DJIA if IBM increases 4.0 percent DJIA if Alcoa increases 4.0 percent

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management 101 Get A Grip On Your Business Numbers

Authors: Angie Mohr

2nd Edition

1551808056, 978-1551808055

More Books

Students also viewed these Finance questions