Exercise #3

# Exercise #3 - stock increased by \$5 What would the DJIA...

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1 Finance 355: Investments Instructor: Shuming Liu In-Class Exercise 3 Chapter 5 Question 10 On November 20, 2009, the DJIA opened at 10,327.91. The divisor at that time was 0.132319125. Suppose on this day the prices for 29 of the stocks remained unchanged and one
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Unformatted text preview: stock increased by \$5. What would the DJIA level be at the end of the day? ANSWER: Nov 20 Open: ∑ P / 0.132319125 = 10,327.91; ∑ P = 1,366.58 Nov 20 Close: ∑ P = 1366.58 + 5 = 1371.58; Index level = 1371.58 / 0.132319125 = 10,365.70...
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