Imagine that the Mini-Dow Average (MDA) is based on the closing prices of five stocks. The divisor
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Imagine that the Mini-Dow Average (MDA) is based on the closing prices of five stocks. The divisor used in the calculation of the MDA is currently 0.765. The closing prices for each of the five stocks in the MDA today and exactly one year ago, when the divisor was 0.780, are given in the accompanying table.
a. Calculate the MDA today and that of a year ago.
b. Compare the values of the MDA calculated in part a and describe the apparent market behavior over the last year. Was it a bull or a bear market?
StocksStocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...
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Related Book For
Fundamentals Of Investing
ISBN: 9780134083308
13th Edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
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