The stocks that make up the Dow Jones Industrial Average:
A. are dominated by the automobile industry.
B. are not a broad measure of the market since they do not include any technology companies.
C. have changed as the structure of the economy has changed.
D. are the same ones that were originally used to construct the index.
Answer: C
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In international finance, hedging indicates:
a. not being able to make a commitment to buy or sell. b. delaying a purchase of foreign exchange, hoping the price will fall. c. simultaneously buying several currencies to ensure that at least one will rise in value. d. avoiding risk of loss by offsetting an obligation to buy a foreign currency by locking in a contract to sell it at the same time.
Under the social interest theory of regulation, the goal of regulating natural monopolies is
A) to provide a larger, though not maximum, profit for the firms. B) to use average cost pricing. C) to provide an outcome similar to the competitive outcome. D) to provide a the maximum profit for the firms. E) None of the above answers is correct.