Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How does the calculation method for the S&P 5 0 0 differ from that of the Dow Jones Industrial Average ( DJIA ) ? The

How does the calculation method for the S&P 500 differ
from that of the Dow Jones Industrial Average (DJIA)?
The S&P 500 is a price-weighted index, whereas the DJIA is a market-
capitalization-weighted index.
Both the S&P 500 and the DJIA are calculated based on the share price of the
included companies.
The S&P 500 is a market-capitalization-weighted index, whereas the DJIA is a
price-weighted index.

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

Students also viewed these Finance questions