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Author Question: Suppose that Pfizer and Boeing are part of the Dow-Jones Industrial Average. If on a given day ... (Read 35 times)

am7272

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Question 1

Stock market averages reflect the arithmetic average price behavior of a group of stocks
◦ at a given point in time.
◦ relative to a base value set at an earlier point in time.
◦ relative to other indexes.
◦ relative to a base price of 100.

Question 2

Suppose that Pfizer and Boeing are part of the Dow-Jones Industrial Average.  If on a given day Boeing closes at $320 and Pfizer at $40
◦ the difference in price will not affect the Average.
◦ the Average will include 8 shares of Pfizer for each share of Boeing.
◦ the effect of each stock on the Average cannot be determined without knowing the number of shares outstanding for each company.
◦ changes in the price of Boeing shares will have 8 times the effect on the Average as changes in the price of Pfizer.


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Marked as best answer by am7272 on Mar 29, 2022

marufp

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am7272

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Reply 2 on: Mar 29, 2022
YES! Correct, THANKS for helping me on my review


scottmt

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Reply 3 on: Yesterday
Gracias!

 

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