Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose on May 3 1 , 2 0 2 2 , the DJIA opened at 3 3 , 2 2 4 . 5 9 .

Suppose on May 31,2022, the DJIA opened at 33,224.59. The divisor at that time was 0.15244. In June 2022, United Healthcare (UNH) was the highest-priced stock in the DJIA and Walgreens (WBA) was the lowest. The opening price for UNH on May 31,2022, was $511.78, and the closing price for WBA was $45.03. Suppose this day the other 29 stock prices remained unchanged and UNH increased 5 percent. What would the new DJA level be? Now assume only WBA increased by 5 percent. Find the new DJIA level.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
\table[[DJIA if UNH increases 5 percent],[DJIA if WBA increases 5 percent]]
image text in transcribed

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

Recommended Textbook for

Multinational Business Finance

Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett

16th Edition

013749601X, 978-0137496013

More Books

Students also viewed these Finance questions