Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 1: Dow Jones Industrial Average (4 points) IBM is a company in the Dow Jones Industrial Average with share price of S200. The Dow
Problem 1: Dow Jones Industrial Average (4 points) IBM is a company in the Dow Jones Industrial Average with share price of S200. The Dow Jones industrial average is currently 14,818.75, and the Dow Divisos0.130216 (a) What is the su of the prices of a 30 companies in the Dow Jones Industrial Average Sum of Prices: (b) What is IBM's weight in the computation of the DJIA return? IBM Weight: c) Imagine IBM did a 2:1 stock split. If the Dow Divisor and the other 29 Dow company's stock prices remained unchanged, what would be the new DJIA? New D.JIA: (d) What would the new Dow Divisor have to be so that the DJIA stayed at 14,818.75 after IBM's split? Please give your answer to the nearest 5 digits Dow Divisor
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