QUESTION 11 6.67 po Imagine that the Mini-Dow Average (MDA) is based on the clos

Question

QUESTION 11 6.67 po Imagine that the Mini-Dow Average (MDA) is based on the closing prices of 5 stocks. The divisor used in the calculation of the MDA is currently 0.765. The closing prices for each of the 5 stocks in the MDA today and exactly 1 year ago, when the divisor was 0.780, are given in the following table: Today 1 Year Ago Stock Ace Computers Coburn Motor Company National Soap&Cosmetics; Ronto Foods Wings Aircraft 75.22 37.61 110.68 73.15 94.69 64.31 33.73 94.12 71.75 88.27 Calculate the MDA today and that of a year ago. None of the answers is correct 658.15 and 395.36 725.36 and 384.36 412.32 and 598.65 511.57 and 451.51

Explanation / Answer

Index value a year ago = (64.30+33.73+94.12+71.75+88.27)/0.780 451.5 Index Value today = (75.22+37.61+110.68+73.15+94.69)/0.765      511.57 The MDA today is 511.57 and MDA one year ago is 451.50 The correct answer is the 5th one

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