Which one of the following is a true statement regarding the Dow Jones Industrial Average?
A) It is a value-weighted average of 30 large industrial stocks.
B) It is a price-weighted average of 30 large industrial stocks.
C) It is a price-weighted average of 100 large stocks traded on the New York Stock Exchange.
D) It is a value-weighted average of all stocks traded on the New York Stock Exchange.

Question

Quizplus · Accepted Answer

The Dow Jones Industrial Average is a price-weighted index that is calculated by adding up the prices of the 30 large industrial stocks and dividing by a divisor. Therefore, option B is the correct statement. Option A is incorrect because the Dow Jones is not a value-weighted index. Option C is incorrect because the Dow Jones only includes 30 stocks, not 100. Option D is incorrect because the Dow Jones does not include all stocks traded on the NYSE.

Which One of the Following Is a True Statement Regarding