Question
On October 28, 2015, the DJIA opened at 12,608.56. The divisor at that time was 0.132340204. In October 2015, Goldman Sachs was the highest priced
On October 28, 2015, the DJIA opened at 12,608.56. The divisor at that time was 0.132340204. In October 2015, Goldman Sachs was the highest priced stock in the DJIA and Cisco was the lowest. Assume the closing price for Goldman Sachs on October 27, 2015, was $246.48, and the closing price for Cisco was $12.78. Suppose the next day the other 29 stock prices remained unchanged and Goldman Sachs increased 4.4 percent. What would the new DJIA level be? Now assume only Cisco increased by 4.4 percent. Find the new DJIA level.
Step by Step Solution
3.43 Rating (150 Votes )
There are 3 Steps involved in it
Step: 1
The Dow Jones Industrial Average DJIA is calculated using a priceweighted methodology The formula fo...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 StartedRecommended Textbook for
Fundamentals of Investments, Valuation and Management
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
8th edition
1259720697, 1259720691, 1260109437, 9781260109436, 978-1259720697
Students also viewed these Finance questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App