Exercise #3

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

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

Ask a homework question - tutors are online