The Dow Jones Industrial Average is ________.
A) a price-weighted average
B) a value weight and average
C) an equally weighted average
D) an unweighted average

Question

Quizplus · Accepted Answer

The Dow Jones Industrial Average is a price-weighted average, which means it is calculated by adding up the prices of the 30 component stocks and dividing by a divisor that is adjusted for stock splits and other events. This means that higher-priced stocks have a greater impact on the index than lower-priced stocks.

The Dow Jones Industrial Average Is ________