Answered step by step
Verified Expert Solution
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,
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started