Determine the value of the Dow Jones Industrial Average as of your date of birth and as

Question:

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 return does not include income, it understates the return. Assume that you collected dividends of 2 percent and compare the return on the Dow (including the dividends) with the stock returns in Exhibit 10.2. Information on the Dow Jones averages and indexes may be found at www.djindexes.com.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...