Complete Question:
The value of both the Dow Jones and Standard and Poor's Averages would be most affected by a change in the:
A. transportation stocks
B. financial stocks
C. utility stocks
D. industrial stocks
Answer:
The value of both the Dow Jones and Standard and Poor's Averages would be most affected by a change in the:
D. industrial stocks
Explanation:
The Dow Jones Industrial Average is made up of 30 selected companies from different industries. These companies are meant to represent the other companies in their various industries. They are usually selected from the S&P 500. On its own the S&P 500 are the 500 largest publicly traded companies. Since the Dow Jones Industrial Average are mainly industrial stocks, one can comfortably conclude that "the value of both the Dow Jones and Standard and Poor's Averages would be most affected by a change in the industrial stocks."
