Which of the following statements about the Dow Jones Industrial Average is INCORRECT? 1. Lower-priced stocks tend to affect the index less than higher-priced stocks. II. The empirical performance of the DJIA is always better than the performance of the S&P 500 during periods of crisis. III. The DJIA divisor increases after a stock split. OI and III only O I and II only O I, II and III O II and III only

Fundamentals of Financial Management (MindTap Course List)
15th Edition
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 22SP
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Question 6
Which of the following statements about the Dow Jones Industrial Average is INCORRECT?
I. Lower-priced stocks tend to affect the index less than higher-priced stocks.
II.
The empirical performance of the DJIA is always better than the performance of the S&P 500
during periods of crisis.
III. The DJIA divisor increases after a stock split.
O I and III only
O I and II only
O I, II and III
O II and III only
Transcribed Image Text:Question 6 Which of the following statements about the Dow Jones Industrial Average is INCORRECT? I. Lower-priced stocks tend to affect the index less than higher-priced stocks. II. The empirical performance of the DJIA is always better than the performance of the S&P 500 during periods of crisis. III. The DJIA divisor increases after a stock split. O I and III only O I and II only O I, II and III O II and III only
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