Which of the following statements regarding the Dow Jones Industrial Average (DJIA) is false?
A) The DJIA is not very representative of the market as a whole.
B) The DJIA consists of 30 blue chip stocks.
C) The DJIA is affected equally by changes in low- and high-priced stocks.
D) The DJIA divisor needs to be adjusted for stock splits.
E) The value of the DJIA is much higher than individual stock prices.

Question

Quizplus · Accepted Answer

The high-priced stocks have much more impact on the DJIA than do the lower-priced stocks.

Which of the Following Statements Regarding the Dow Jones Industrial