Criticized as not being representative of the economy

Assignment Help Financial Management
Reference no: EM131444529

The DJIA is often criticized as not being representative of the economy given that it comprises of stocks of only 30, large, mature, and less volatile companies. It has been observed that the DJIA performance often does not mimic that of the NYSE. What are the merits or demerits of the DJIA composition? Provide examples to support your answer.

Reference no: EM131444529

Questions Cloud

Values ranging from a low : A data set has values ranging from a low of 10 to a high of 52. What is wrong with using the class limits of 10-19, 20-29, 30-39, and 40-49 for a frequency table?
Describe what a company-product can do to improve sales : You have been asked by your organization to conduct research and prepare a paper regarding consumer groups and behavior. Select a particular consumer group that is of interest to you and analyze its demographics, psychographics, attitude, and life..
What size sample would then need to achieve : They want to be 95% confident in their estimate within 2.5% Assuming set up costs are expensive compared to the actual sampling, what size sample would then need to achieve these results at a 60% response rate?
What would annual yield to maturity be on bond : A few years ago, Spider Web, Inc. issued bonds with a 7.09 percent annual coupon rate, paid semiannually. The bonds have a par value of $1,000, a current price of $1,084, and will mature in 15 years. What would the annual yield to maturity be on the ..
Criticized as not being representative of the economy : The DJIA is often criticized as not being representative of the economy given that it comprises of stocks of only 30, large, mature, and less volatile companies. It has been observed that the DJIA performance often does not mimic that of the NYSE. Wh..
Describe a product you like that you believe : Describe a product you like that you believe more people should purchase. Asa marketer, how would you reposition the product in the cusomer's mind to increase its purchase? Outline your strategy. Create a new tagline for this product.
Determine some way to make a profit : A Tokyo bank offers to sell euros at 121.50 yen per euro and buy 121.50 yen per euro. A Berlin bank offers to sell pounds at 1.5939 euros per pound and buy pounds at 1.5939 euros per pound. A London bank offers to sell pounds at 191.31 yen per pound ..
Prepare a report that discusses the pricing strategies : In this module you will prepare a report that discusses the pricing and distribution strategies. Research the following topics for the latest information concerning issues, trends, and potential impact to your client.
Analyse the situation and prepare a plan to correct : Analyse the situation and prepare a plan to correct. The plan should include an agenda for the meeting with EITHER the employees or the supervisors, and consider how to respond to questions and objections attendees might pose

Reviews

Write a Review

Financial Management Questions & Answers

  Obtain the annual package for siriusxm

Be sure to include at least two ratios in each ratio category: liquidity, profitability, and solvency. Explain what each ratio means and what the ratio tells you about your organization's performance in the most recent period.

  What is the operating cash flow for the project in year

You are evaluating a project for The Tiff-any golf club, guaranteed to correct that nasty slice. You estimate the sales price of The Tiff-any to be $490 per unit and sales volume to be 1,000 units in year 1; 900 units in year 2; and 1,325 units in ye..

  Geithner amp bernanke amid the global financial crisis1

geithner amp bernanke amid the global financial crisis1. from the breadth and depth of the economic downturn it was

  Best describes the real rate of interest

Which of the following best describes the Real Rate of Interest?

  A firm with many future investment projects should

A firm with many future investment projects should. Which of the following is NOT associated with (or does not contribute to) business risk? Recall that business risk is affected by a firm's operations.

  Projections given for price-quantity-variable costs

We are evaluating a project that costs $1,666,000, has a seven-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Suppose the projections given for price, quantity, variable costs, and..

  What is the yield-to-maturity of this bond

United Air has a 6.5% coupon 15 year bond (par value = $1,000). Assume that coupon payments are semi-annual and that the current price is $982.55. What is the yield-to-maturity of this bond? Be sure to report on an annualized basis

  Firm earnings per share after recapitalization

The Rivoli Company has no debt outstanding, and its financial position is given by the following data: Assets (Market value = book value) $3,000,000 EBIT $500,000 Cost of equity, rs 10% Stock price, Po $15 Shares outstanding, no 200,000 Tax rate, T (..

  Label the equilibrium level of real gdp

Draw a 45°-line diagram showing an equilibrium in the goods market. Label the equilibrium level of real GDP, Y1 .

  Should china be forced to alter the value of its

should china be forced to alter the value of its currency?the united states and the european union members are

  Find optimal solution using the graphical solution procedure

Find the optimal solution using the graphical solution procedure. If the objective function is changed to 2A + 6B, what will the optimal solution be? How many extreme points are there? What are the values of A and B at each extreme point?

  Calculate the expected rate of return-Risk Level

Calculate the Holding Period Return: Calculate the expected rate of return: You are holding four portfolios. It has different expected rate of return and risk level of %. What is your expected return of your three investment?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd