All Related Questions of Dow Jones Industrial Average

Q: Jackson is a sophisticated investor. As such, she was initially

Jackson is a sophisticated investor. As such, she was initially a member of a small group that was going to participate in a private placement of $1 million of common stock of Clarion Corporation. Num...

Q: In January 2018, Continental Fund Services, Inc., enters into

In January 2018, Continental Fund Services, Inc., enters into a one-year contract with a client to provide investment advisory services. The company will receive a management fee, prepaid at the begin...

Q: Note from Table 10-2 that some technology-oriented firms

Note from Table 10-2 that some technology-oriented firms (Apple) in the Dow Jones Industrial Average have high market risk while others (Intel and Verizon) have low market risk. How do you explain thi...

Q: On March 5, 2013, the Dow Jones Industrial Average set

On March 5, 2013, the Dow Jones Industrial Average set a new high. The index closed at 14,253.77, which was up 125.95 that day. What was the return (in percent) of the stock market that day?

Q: On March 9, 2009, the Dow Jones Industrial Average reached

On March 9, 2009, the Dow Jones Industrial Average reached a new low. The index closed at 6,547.05, which was down 79.89 that day. What was the return (in percent) of the stock market that day?

Q: Thursday, October 24, 1929, easily ranks as the most

Thursday, October 24, 1929, easily ranks as the most dramatic day that Wall Street has ever seen. 1 That day witnessed the beginning of the Great Stock Market Crash that over the following few years w...

Q: In 2000, the Dow Jones Industrial Average’s range was 11,

In 2000, the Dow Jones Industrial Average’s range was 11,72329,796. If the historical returns on stock were 10.4 percent, what should have been the range in the Dow Jones Industrial Average for 2009 i...

Q: Determine the value of the Dow Jones Industrial Average as of your

Determine the value of the Dow Jones Industrial Average as of your date of birth and as of your most recent birthday. What was the annualized return on the average between the two dates? Since this re...

Q: How does the computation of the Dow Jones Industrial Average differ from

How does the computation of the Dow Jones Industrial Average differ from Standard & Poor’s 500 stock index and the Value Line index?

Q: What is dollar cost averaging? What is averaging down? Why

What is dollar cost averaging? What is averaging down? Why may averaging down result in poor investment decisions? What were the percentage changes for these measures of the stock market in subsequen...

Q: Which Dow Jones Industrial Average stocks would be considered “dogs”?

Which Dow Jones Industrial Average stocks would be considered “dogs”? Determine the Dow dogs as of January 1; invest $1,000 in each dog. At the end of a time period such as the semester or year, compa...

Q: The following table provides the Dow Jones Industrial Average (DJIA)

The following table provides the Dow Jones Industrial Average (DJIA) opening index value on the first working day of 1994–2013. Develop a trend line and use it to predict the opening...

Q: Refer to the DJIA data in Problem 5-41.

Refer to the DJIA data in Problem 5-41. Problem 5-41: The following table provides the Dow Jones Industrial Average (DJIA) opening index value on the first working day of 1994–2013...

Q: The closing stock price for each of two stocks was recorded over

The closing stock price for each of two stocks was recorded over a 12-month period. The closing price for the Dow Jones Industrial Average (DJIA) was also recorded over this same time period. These va...

Q: Question: Profitability Effects of Firm Size for DJIA Companies Does

Profitability Effects of Firm Size for DJIA Companies Does large firm size, pure and simple, give rise to economic profits? This question has long been a source of great interest in both business an...

Q: The idea of using the difference between the market value of the

The idea of using the difference between the market value of the firm and accounting book values as an indicator of market power and/or valuable intangible assets stems from the pioneering work of Nob...

Q: During the late 1920s, approximately 55 percent of all personal savings

During the late 1920s, approximately 55 percent of all personal savings in the United States was used to purchase securities. Public confidence in the business community was extremely high as stock va...

Q: The Dow Jones Industrial Average on July 20, 2016, was

The Dow Jones Industrial Average on July 20, 2016, was 18,580 and the price of a September 185 (European) call option on the index was $3.35. Use the DerivaGem software to calculate the implied volati...

Q: Using Figure 14.1, answer the following questions:

Using Figure 14.1, answer the following questions: a. What was the settle price for March 2016 coffee futures on this date? What is the total dollar value of this contract at the close of trading for...

Q: What does it mean if the Dow Jones Industrial Average rises by

What does it mean if the Dow Jones Industrial Average rises by, say, 100 points in a day?

Q: Distinguish between the Dow Jones Industrial Average and the S&P

Distinguish between the Dow Jones Industrial Average and the S&P 500.

Q: Consider the daily percent changes of McDonald’s stock price and those of

Consider the daily percent changes of McDonald’s stock price and those of the Dow Jones Industrial Average for trading days in the months of Jan. and Feb. 2010, as shown in Table 11....

Q: When appointed CEO of PepsiCo in 2006, Ms. Indra Nooyi

When appointed CEO of PepsiCo in 2006, Ms. Indra Nooyi was only the 11th woman to run a Fortune 500 company. Since then, Ms. Nooyi has been ranked in the top 10 of Forbes magazine’s list of the world’...

Q: Using the data contained in Figure 2.3, what 52

Using the data contained in Figure 2.3, what 52-week rate of return, excluding dividend yields, would an investor have received by purchasing the following portfolios of stocks? • a...

Q: FILE DOW Characteristics. The accompanying table shows a portion of the

FILE DOW Characteristics. The accompanying table shows a portion of the 30 companies that comprise the Dow Jones Industrial Average (DJIA). The second column shows the year that the company joined the...

Q: DJIA_2012. For the first three months of 2012,

DJIA_2012. For the first three months of 2012, the stock market put up its best firstquarter performance in over a decade (Money.cnn.com, April 9, 2012). The accompanying table shows a portion of the...

Q: A price-earnings ratio or P/E ratio is calculated

A price-earnings ratio or P/E ratio is calculated as a firm’s share price compared to the income or profit earned by the firm per share. Generally, a high P/E ratio suggests that investors are expecti...

Q: The euro-zone crisis has wreaked havoc on U.S

The euro-zone crisis has wreaked havoc on U.S. stock markets (The Wall Street Journal, June 8, 2012). A portfolio analyst wonders if the average trading volume on the Dow Jones Industrial Average (DJI...

Q: There are six broad sectors that comprise the Dow Jones Industrial Average

There are six broad sectors that comprise the Dow Jones Industrial Average (DJIA). These are the areas in which the company conducts its primary business. The following table shows a portion of the 30...

Q: A research analyst is trying to determine whether a firm’s priceearnings (

A research analyst is trying to determine whether a firm’s priceearnings (P⁄E) and price-sales (P⁄S) ratios can explain the firm’...

Q: Gary Martin is a research analyst at an investment firm in Chicago

Gary Martin is a research analyst at an investment firm in Chicago. He follows the oil industry and has developed a pretty sophisticated model that forecasts an oil company’s stock p...

Q: A research analyst at an investment firm is attempting to forecast the

A research analyst at an investment firm is attempting to forecast the daily stock price of Home Depot, using causal models. The following table shows a portion of the daily adjusted closing prices of...

Q: A research analyst follows the monthly price data for the Dow Jones

A research analyst follows the monthly price data for the Dow Jones Industrial Average for the years 2008–2010. The accompanying table shows a portion of the price data. The analyst wants to test the...

Q: Refer to Exercise 3.54. Use the U.S

Refer to Exercise 3.54. Use the U.S. CPI monthly file to measure the Dow Jones Industrial Average in 1982–1984 constant dollars. What have you learned? Data from Exercise 3.54: The Jones Industrial Av...

Q: An investor believes that on a day when the Dow Jones Industrial

An investor believes that on a day when the Dow Jones Industrial Average (DJIA) increases, the probability that the NASDAQ also increases is 77%. If the investor believes that there is a 60% probabili...

Q: Find the indicated probability and interpret the results. From 1975

Find the indicated probability and interpret the results. From 1975 through 2016, the mean gain of the Dow Jones Industrial Average was 456. A random sample of 32 years is selected from this populatio...

Q: a. identify the claim and state H0 and Ha,

a. identify the claim and state H0 and Ha, b. find the critical value(s) and identify the rejection region(s), c. calculate d and sd, d. find the standardized test statistic...

Q: Harry is an old-time investor. He tells you,

Harry is an old-time investor. He tells you, “When I was young I was told the Dow Jones Industrial Average tells you everything you need to know about how the stock market is doing. Is that still true...

Q: The S&P 500 Index is different from the Dow Jones

The S&P 500 Index is different from the Dow Jones Industrial Average in that:

Q: An economics student is studying the American economy and finds that the

An economics student is studying the American economy and finds that the correlation between the inflation-adjusted Dow Jones Industrial Average and the Gross Domestic Product (GDP) (also inflation ad...

Q: Does the Dow Jones Industrial Average (DJIA) reflect the economy

Does the Dow Jones Industrial Average (DJIA) reflect the economy as measured by the Gross Domestic Product (GDP)? Here’s a plot and a regression. (Both are converted to 2010 dollars...

Q: Some people believe that the stock market shows patterns according to the

Some people believe that the stock market shows patterns according to the day of the week or the month of the year (“Sell in May and walk away”). We have the closin...

Q: The file Indices contains the total rate of return percentage for the

The file Indices contains the total rate of return percentage for the Dow Jones Industrial Average (DJIA), the Standard & Poor’s 500 (S&P 500), and the technology-heavy NASDA...

Q: Spurious correlation refers to the apparent relationship between variables that either have

Spurious correlation refers to the apparent relationship between variables that either have no true relationship or are related to other variables that have not been measured. One widely publicized st...

Q: One theory concerning the Dow Jones Industrial Average is that it is

One theory concerning the Dow Jones Industrial Average is that it is likely to increase during U.S. presidential election years. From 1964 through 2016, the Dow Jones Industrial Average increased in 1...

Q: Shown here is a scatter plot of the NASDAQ 100 Index versus

Shown here is a scatter plot of the NASDAQ 100 Index versus the Dow Jones Industrial Average on Friday closings over a period of one year (January 12, 2018 to January 4, 2019). What does the graph tel...

Q: The term “beta” refers to a measure of a stock’s

The term “beta” refers to a measure of a stock’s price volatility relative to the stock market as a whole. A beta of 1 means the stockâ€...

Q: The Russell 1000 is a stock market index consisting of the largest

The Russell 1000 is a stock market index consisting of the largest U.S. companies. The Dow Jones Industrial Average is based on 30 large companies. The file Russell gives the annual percentage returns...

Q: Consider a day when the Dow Jones Industrial Average went up 149

Consider a day when the Dow Jones Industrial Average went up 149.82 points. The following table shows the stock price changes for a sample of 12 companies on that day. a. Compute the sample variance...

Q: The Dow Jones Industrial Average (DJIA) and the Standard &

The Dow Jones Industrial Average (DJIA) and the Standard & Poor’s 500 (S&P 500) indexes are used as measures of overall movement in the stock market. The DJIA is based on the...

Q: The term “beta” refers to a measure of a stock’s

The term “beta” refers to a measure of a stock’s price volatility relative to the stock market as a whole. A beta of 1 means the stockâ€...

Q: The Russell 1000 is a stock market index consisting of the largest

The Russell 1000 is a stock market index consisting of the largest U.S. companies. The Dow Jones Industrial Average is based on 30 large companies. The file Russell gives the annual percentage returns...

Q: The file Indices contains data that represent the total rate of return

The file Indices contains data that represent the total rate of return percentage for the Dow Jones Industrial Average (DJIA), the Standard & Poor's 500 (S&P 500), and the technology-heavy NASDAQ Comp...

Q: In 2016 through 2018, the value of precious metals fluctuated greatly

In 2016 through 2018, the value of precious metals fluctuated greatly. The data (stored in Metals) represent the total rate of return (in percentage) for platinum, gold, and silver from 2016 through 2...

Q: Figure 3.36 on the next page depicts the annual high

Figure 3.36 on the next page depicts the annual high values of the Dow Jones Industrial Average (DJIA) for stocks. How is this graph misleading? How could it be drawn so that it is not misleading? In...

Q: Listed below (in order by row) are annual high values

Listed below (in order by row) are annual high values of the Dow Jones Industrial Average from 1995 through 2015. Construct a time-series line chart of the data. Comment on the result. 5,216 6,561 8,2...

Q: Bart Campbell, CFA, is a portfolio manager who has recently

Bart Campbell, CFA, is a portfolio manager who has recently met with a prospective client, Jane Black. After conducting a survey market line (SML) performance analysis using the Dow Jones Industrial A...

Q: In January 2021, Continental Fund Services, Inc., enters into

In January 2021, Continental Fund Services, Inc., enters into a one-year contract with a client to provide investment advisory services. The company will receive a management fee, prepaid at the begin...

Q: The Excel file Closing Stock Prices provides data for four stocks and

The Excel file Closing Stock Prices provides data for four stocks and the Dow Jones Industrial Average over a one-month period. a. Develop a spreadsheet for forecasting each of the stock prices and th...

Q: What would happen to the divisor of the Dow Jones Industrial Average

What would happen to the divisor of the Dow Jones Industrial Average if FedEx, with a current price of around $115 per share, replaced Intel (with a current price of about $55 per share)?

Q: The Wellton Fund is a balanced mutual fund that includes a mix

The Wellton Fund is a balanced mutual fund that includes a mix of stocks and bonds. Following are the year-end share prices of the fund and Dow Jones Industrial Average (DJIA) for a 20-year period: De...

Q: In January 2024, Continental Fund Services, Inc., enters into

In January 2024, Continental Fund Services, Inc., enters into a one-year contract with a client to provide investment advisory services. The company will receive a management fee, prepaid at the begin...

Q: Peter Tanaka is interested in starting a stock portfolio. He has

Peter Tanaka is interested in starting a stock portfolio. He has heard many financial reporters talk about the Dow Jones Industrial Average as being a proxy for the overall stock market. From visiting...

Q: In Exercise 69, we saw the relationship between CO2 measured at

In Exercise 69, we saw the relationship between CO2 measured at Mauna Loa and average global temperature anomaly from 1959 to 2016. Here is a plot of average global temperatures plotted against the ye...

Q: How many ExxonMobil May 2020 $40.00 put options were

How many ExxonMobil May 2020 $40.00 put options were outstanding at the open of trading on March 13, 2020? b. What was the settlement price of a 10-year Treasury note May 138.00 futures call option...

Q: One measure of successful investing is being able to “beat the

One measure of successful investing is being able to “beat the market.” To beat the market in any given year, an investor must earn a rate of return greater than the rate of return of some market bask...