In May 2012, IBM was the highest priced stock in the DJIA and Alcoa was the lowe

Question

In May 2012, IBM was the highest priced stock in the DJIA and Alcoa was the lowest. On May 9, 2012, the DJIA opened at 12,719.01. The divisor at that time was .132457265. The closing price for IBM on May 8, 2012, was $271.48 and the closing price for Alcoa was $14.78. Suppose the next day the other 29 stock prices remained unchanged and IBM increased 3.6 percent. What would the new DJIA level be? Now assume only Alcoa increased by 3.6 percent. Find the new DJIA level. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

In May 2012, IBM was the highest priced stock in the DJIA and Alcoa was the lowest. On May 9, 2012, the DJIA opened at 12,719.01. The divisor at that time was .132457265. The closing price for IBM on May 8, 2012, was $271.48 and the closing price for Alcoa was $14.78. Suppose the next day the other 29 stock prices remained unchanged and IBM increased 3.6 percent. What would the new DJIA level be? Now assume only Alcoa increased by 3.6 percent. Find the new DJIA level. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Explanation / Answer

if the IBM stock incresed by 3.6% then the price is 281.2533

then the DJIA is increased by 73 points

if the Alcoa price increased by 3.6%, then the sotck price is $15.312

then DJIA will be increaed by 4 points

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