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  3. price shares company a b ...

PRICE SHARES company A B ...

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Question

Finance

PRICE SHARES

company

A

B

C

A

B

C

Day 1

12

23

52

500

350

250

Day 2

10

22

55

500

350

250

Day 3

14

46

52

500

175a

250

Day 4

13

47

25

500

175

500b

Day 5

12

45

26

500

175

500

a split at close of day 2

b split at close of day 3

a) calculate a Dow Jones industrial average for days one through five.

b) What effects have the splits had in determining the next day's index?

c) From a copy of the Wall Street Journal, find the divisor that is currently being used in calculating the DJIA.

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