1. Write a brief history of the DJIA (one paragraph). Write in your own words- do not copy and paste from another source. 

2. Collect the name, share price, and change in the price of each of the 30 companies in the DJIA from www.marketwatch.com or any other source. Copy and paste the prices on an Excel sheet and also copy the reported value of the DJIA. State the date and time when the stock prices and the DJIA value were taken. Attach a screenshot of the prices and the DJIA value. 

3. Compute the value of the DJIA using the prices in #2 above and the current divisor (0.15172753). What does this value mean? (5 pts) (Must use built-in Excel formula (such as SUM, AVERAGE, etc.) for computations, not a calculator). 

4. Compute the value of the weight of each company in the DJIA. What does the value mean?

5. How much does the change in stock price (when you copied the numbers) of each company contribute to the overall change in the DJIA value? Compute the change for each company and add up the changes. This should be equal to the change in the value of the DJIA. 

6. Assume that the company with the highest stock price announces 5-for-1 stock split on the day you selected for the HW. Everything else assumed the same, re-compute the DJIA value. Did the value go up/down as a result of the stock split? Why? 

7. Compute the value of the divisor that would leave the value of the DJIA unchanged (as it was in #3) after the split. Show computations. 

NOTES: Read carefully and follow Collect the stock prices data during the day when the NYSE is open (8:30 am-4:30 pm, central time). Every student must use a different set of numbers for computations. Multiple submissions of the same homework would be considered cheating and be penalized Clearly indicate the date and time you collected the stock price data. Must use MS Excel for text as well as for computations; the formula behind a computed number must be visible when cursor is placed on it; no Word or other file type will be accepted for grading. 

Use just one tab (worksheet) for all questions (text and computations) Write your name at the top of the HW; write question number for each answer; clearly separate each answer

Answer rating: 100% (QA)

ANSWER 1 The DJIA is a stock market index that measures the stock performance of 30 large companies ... View the full answer