Question

On October 28, 2015, the DJIA opened at 9,011.26. The divisor at that time was 0.132410441....

On October 28, 2015, the DJIA opened at 9,011.26. The divisor at that time was 0.132410441. Suppose on this day the prices for 29 of the stocks remained unchanged and one stock increased $6. What would the DJIA level be at the end of the day? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

DJIA level =

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Answer #1

DJIA is calculated by dividing the sum of prices of all 30 stocks by the divisor

For October 28, 2015, DJIA = Sum of 30 stocks / Divisor
=> 9011.26 = Sum of 30 stocks / 0.132410441
=> Sum of 30 stocks = 9011.26*0.132410441 = 1193.18491057

Now, only price of one stock increased by $6, others remained same
Hence, Sum of 30 stocks = 1193.18491057 + 6 = 1199.18491057
Divisor = 0.132410441
Hence, DJIA level = Sum of 30 stocks / Divisor = 1199.18491057 /  0.132410441 = 9056.57

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