A student makes the following observation: The Dow Jones Industrial Average currently has a value of 13,500,
Question:
A student makes the following observation: “The Dow Jones Industrial Average currently has a value of 13,500, while the S&P 500 has a value of 1,500. Therefore, the prices of the stocks in the DJIA are nine times as high as the prices of the stocks in the S&P 500.” Briefly explain whether you agree with the student’s reasoning.
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The students observation is incorrect The values of the Dow Jones Industrial Average DJIA and the SP 500 are not directly comparable to the prices of ...View the full answer
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Related Book For 
Money Banking And The Financial System International Edition
ISBN: 978-1292000183
2nd Edition
Authors: R. Glenn Hubbard ,Anthony P Obrien
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