The indexes in which the price of stock of companies listed in stock market index are added together and is divided by an adjusted value are classified as ________?
Correct answer: D. Dow Indexes
- A. herring indexes
- B. group indexes
- C. John indexes
- D. Dow Indexes
Explanation
A Dow index is price-weighted, meaning stock prices are combined and divided by an adjusted divisor. The divisor accounts for events such as stock splits so the index remains comparable.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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