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Given the following information for a price-weighted Dow Jones Industrial Average Index (DJIA). Price Shares Company A B A B Day 1 12 23 52
Given the following information for a price-weighted Dow Jones Industrial Average Index (DJIA). Price Shares Company A B A B Day 1 12 23 52 500 350 250 Day 2 10 22 56 500 350 250 Day 3 14 115 30 500 70* 500* * Stock split at close of day 2 What is the price level of DJIA for Day 3? A. 29.00 B. 31.51 C. 29.33 D. 53.00 Use the information in Question 2. What is the return of DJIA from Day 2 to 3? A. 1.14% B. 7.43% C. 80.70% D. 6.92%
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