Context: As of August 31, 2020, the Dow Jones index is changing its composition by replacing the
Question:
Context: As of August 31, 2020, the Dow Jones index is changing its composition by replacing the following three components:
Salesforce (CRM) replaces Exxon Mobil (XOM)
Amgen (AMGN) replaces Pfizer (PFE)
Honeywell International (HON) replaces Raytheon Technologies (RTX)
The tab "DJIA" in the Excel file "Indexes" gives you the list of the stocks in the DJIA index, their sector, their share price, and their weight (before and after the change in the index composition).
Question 1. The press release mentions that the move was prompted by Apple's decision to split its stock 4:1 on August 31st, 2020. Since the DJIA is a price-weighted index, this means that Apple will have a lower weight in the index after the split. Verify this by answering the following questions:
What was the weight of Apple in the DJIA index on August 28, 2020? ______________
What was the weight of Apple in the DJIA index on August 31, 2020? ______________
Expert Answer:
