Assume that the DJIA closed at 10,875 one day recently, and the divisor was .12493117. a....

Assume that the DJIA closed at 10,875 one day recently, and the divisor was .12493117.
a. What is the sum of the prices of the 30 stocks in the index, given this information?
b. Assume that one stock in the index, Pfizer, moved $4.40 that day, while the index itself
moved about 105 points (to close at 10,875). What percentage of the total movement in
the DJIA that day was accounted for by the movement in Pfizer?
c. Now assume that one of the 30 stocks had a 2-for-1 stock split that day, declining from
$47.50 to $23.75. What would the new divisor have to be to keep the index unchanged at
10,875?

Solutions

Expert Solution

Given,

Index value = 10875

Divisor = 0.12493117

Solution :-

jeff jeffy answered 4 weeks ago

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