Question
The DJIA is a price weighted stock index consisting of 30 blue chip companies. The companies in the DJIA include AAPL, WMT, and MMM, etc.
The DJIA is a price weighted stock index consisting of 30 blue chip companies. The companies in the DJIA include AAPL, WMT, and MMM, etc. They generally have dierent stock prices. In the month of September, the DJIA index has dropped by 5%. Assume that at the be- ginning of September, you formed a portfolio by investing $10,000 in EACH of the component companies included in the DJIA. Can you conclude that by the end of September, your portfoliois value has also dropped by 5%? Assume that there is no change in the DJIA components and also ignore any dividends.
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