Question: Create a spreadsheet workbook to solve the problems below. Identify the 30 stocks that make up the Dow Jones Industrial Average. Calculate the divisor used
Create a spreadsheet workbook to solve the problems below.
- Identify the 30 stocks that make up the Dow Jones Industrial Average. Calculate the divisor used in calculating this price-weighted index, as of Monday, July 3, 2023. On this date if IBM splits 3-for-1 after the market closes on Monday, what is the new divisor used when the market opens on Tuesday? [Note: your answer will differ from what is published on the Dow Jones website due to rounding]
- Given the quotes below, calculate the index value and the percentage daily change for the daily scenarios listed below using a price-weighted index, value-weighted index, arithmetic equal-weighted index, and a geometric equal-weighted index.
| Security | Price | Number of Shares Outstanding |
| 1 | 50 | 500 |
| 2 | 25 | 1000 |
| 3 | 15 | 750 |
Daily Scenarios
Day 1: Price-weighted divisor is 3; Base index value is 100 (except for the PWI); Day 1 is base year.
Day 2: All three stocks increase by 4%
Day 3: Security 1 increases by 4%
Day 4: Security 2 increases by 4%
Day 5: Security 3 increases by 4%
Answer it on excel and attach screen shots. by shwing formulas. Dont explain me how to do it on excel.
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