Which of the Following Is True of the Dow Jones

Multiple Choice

Which of the following is true of the Dow Jones Industrial Average?

A) It is a value-weighted average of 30 large industrial stocks.
B) It is a price-weighted average of 30 large industrial stocks.
C) The divisor must be adjusted for stock splits.
D) It is a value-weighted average of 30 large industrial stocks, and the divisor must be adjusted for stock splits.
E) It is a price-weighted average of 30 large industrial stocks, and the divisor must be adjusted for stock splits. The Dow Jones Industrial Average is a price-weighted index of 30 large industrial firms, and the divisor must be adjusted when any of the stocks on the index split.