Collect the close index of DJIA for Sep 3 and Sep 4, 2020. Calculate the changes in index from Sep 3, 2020 to Sep 4, 2020.
1. Relate the changes in index to the dollar amount in detail with respect to the sum and average of DJIA component stock prices..
2. Collect close prices of all 30 component stocks of DJIA on September 4, 2020. Calculate the sum and average of stock prices of 30 component stocks. Then, calculate sum of stock prices of 30 component stocks using multiplication of the close index on Sep 4, 2020 and current divisor. Finally, comment on the results of the two calculations.
3. Out of the 30 component stocks of DJIA, explain which stock(s) played significant role in increase or decrease of the index for each day. DJIA is a price-weighted (market) index. Explain what it means.
4. Explain the DJIA (or Dow) divisor in detail. Explain the typical reason for the changes in the divisor.
5. Recently, after changes in three component stocks at the end of August 28, 2020 trading, DJIA is being calculated using a new divisor from August 31, 2020. What is the major reason for the changes in the divisor?
6. Explain why the DJIA is important.
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