Suppose on May 31, 2022, the DJIA opened at 33,204.59. The divisor at that time was 0.15221. In June 2022, United Healthcare (UNH) was the highest-priced stock in the DJIA and Walgreens (WBA) was the lowest. The opening price for UNH on May 31, 2022, was $506.78, and the closing price for WBA was $44.63. Suppose this day the other 29 stock prices remained unchanged and UNH increased 3 percent. What would the new DJIA level be? Now assume only WBA increased by 3 percent. Find the new DJIA level.
Suppose on May 31, 2022, the DJIA opened at 33,204.59. The divisor at that time was 0.15221. In June 2022, United Healthcare (UNH) was the highest-priced stock in the DJIA and Walgreens (WBA) was the lowest. The opening price for UNH on May 31, 2022, was $506.78, and the closing price for WBA was $44.63. Suppose this day the other 29 stock prices remained unchanged and UNH increased 3 percent. What would the new DJIA level be? Now assume only WBA increased by 3 percent. Find the new DJIA level.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Suppose on May 31, 2022, the DJIA opened at 33,204.59. The divisor at that time was 0.15221. In June 2022, United Healthcare (UNH)
was the highest-priced stock in the DJIA and Walgreens (WBA) was the lowest. The opening price for UNH on May 31, 2022, was
$506.78, and the closing price for WBA was $44.63. Suppose this day the other 29 stock prices remained unchanged and UNH
increased 3 percent. What would the new DJIA level be? Now assume only WBA increased by 3 percent. Find the new DJIA level.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
DJIA if UNH increases 3 percent
DJIA if WBA increases 3 percent
658.81
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