ECONOMICS
RISK AND RETURN
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Thirty U.S. stocks
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Thirty municipal bonds
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Thirty globally diverse stocks
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None of the above
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Detailed explanation-1: -The Dow Jones Industrial Average groups together the prices of 30 of the most traded stocks on the New York Stock Exchange (NYSE) and the Nasdaq. It is an index that helps investors determine the overall direction of stock prices.
Detailed explanation-2: -The DJIA includes only 30 large companies. It is price-weighted, unlike stock indices, which use market capitalization. Furthermore, the DJIA does not use a weighted arithmetic mean.
Detailed explanation-3: -The Dow Jones Industrial Average (DJINDICES:^DJI) is a stock index that tracks 30 of the largest U.S. companies. Created in 1896, it is one of the oldest stock indexes, and its performance is widely considered to be a useful indicator of the health of the entire U.S. stock market.
Detailed explanation-4: -The Dow Jones Industrial Average comprises 30 blue-chip stocks that are tops in their industries.
Detailed explanation-5: -The DJIA covers 30 large-cap companies, which are subjectively picked by the editors of The Wall Street Journal. Over the years, companies in the index have been changed to ensure the index stays current in its measure of the U.S. economy.