Imagine that the Mini Dow Average (MDA) is based on the closing prices of stocks The divisor used in the calculation of the MDA is currently 0 775 The closing prices for each of the 5 stocks in the MDA today and exactly 1 years ago, when the divisor was 0 815, are given in the accompanying table Calculate the percentage change in each stock Based on this, is your sense the market is bullish or bearish Calculate the MDA today and that of a year ago and calculate the percentage change in the MDA Based on this, does the market appear to be bullish or bearish Compare your answers to parts a and b above Did you reach the same conclusion about the direction of the overall market What role did the divisor play in the terms of the conclusion you reached in part b Stock Today One year ago Ace Computers $64 $65 Coburn Motor Company $39 $34 National Soap Cosmetics $89 $95 Ronto Foods $69 $72 Wings Aircraft $86 $88

The Answer is in the image, click to view ...

Question: Imagine that the Mini-Dow Average (MDA) is based on the closing prices of stocks. The divisor used in the calculation of the MDA is currently

Imagine that the Mini-Dow Average (MDA) is based on the closing prices of stocks. The divisor used in the calculation of the MDA is currently 0.775. The closing prices for each of the 5 stocks in the MDA today and exactly 1 years ago, when the divisor was 0.815, are given in the accompanying table.

Calculate the percentage change in each stock. Based on this, is your sense the market is bullish or bearish?
Calculate the MDA today and that of a year ago and calculate the percentage change in the MDA. Based on this, does the market appear to be bullish or bearish ?

Compare your answers to parts a and b above. Did you reach the same conclusion about the direction of the overall market? What role did the divisor play in the terms of the conclusion you reached in part b?

Stock Today One year ago

Ace Computers $64. $65

Coburn Motor Company $39 $34

National Soap & Cosmetics $89 $95

Ronto Foods $69 $72

Wings Aircraft $86 $88

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Stock Today Ago Ace Computer $64 $65 Coburn Motor $39. $34 National Soap $89. $95 Ronto Food $69 $ 72 Wings Aircraft $86 $88 Imagine that the Mini-Dow Average (MDA) is based on the closing prices of...

W Due Tuesd 6/3/20 18 FIN 424 IN CLASS EXERCISES-CHAPTER 3 QI) 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...

when the divisor was 0.780, are given in the following table:EB Imagine that the Mini-Dow Average (MDA) is based on the closing prices of 5 stocks. The divisor used in the calculation of the MDA is...

Imagine that the Mini-Dow Average (MDA) is based on the closing prices of 5 stocks. The divisor used in the calculation of the MDA IS currently 0.765. The closing prices for each of the 5 stocks in...

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...

X Data Table Stock Today 1 Year Ago Ace Computers $73.38 $62.85 Coburn Motor Company 36.12 33.27 National Soap & Cosmetics 109.76 95.12 Ronto Foods 73.05 71.24 Wings Aircraft 95.64 88.31 (Click on...

Imagine that the Mini-Dow Average (MDA) is based on the closing prices of 5 stocks. The divisor used in the calculation of the MDA is currently 0.765. The closing prices for each of the 5 stocks in...

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...

P3.2 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...

Why is the allowance method of accounting for bad debts more consistent with accounting standards than the direct write-off method? Under what circumstances is the direct write-off method acceptable?

If the standard deviation of the S&P 500 return is 22%, and the long-term mean return is 12%, is a stock more or less risky than the S&P 500 if it a mean return of 50% and a standard...

How do store atmospherics help to achieve communications objectives?

The force constant of a massless spring is 2 5 . 0 N / m . A mass of 0 . 4 5 kg is oscillating in simple harmonic motion at the end of the spring

Describe the organizational stability strategy. LO1

Create a cost estimate and model for building a new, state-of-the-art multimedia classroom for your organization within the next six months. The classroom should include 20 high-end personal...

On the companion Web site, read the article by William Roetzheim that discusses estimating software costs. Find one or two other references on using SLOC and function points as well as more recent...