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Which of the following statements regarding the Dow Jones Industrial Average (DJIA) is false?


A) The DJIA is not very representative of the market as a whole.
B) The DJIA consists of 30 blue chip stocks.
C) The DJIA is affected equally by changes in low- and high-priced stocks.
D) The DJIA divisor needs to be adjusted for stock splits.
E) The value of the DJIA is much higher than individual stock prices.

F) B) and D)
G) B) and C)

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If the market prices of each of the 30 stocks in the Dow Jones Industrial Average (DJIA) all change by the same percentage amount during a given day, which stock will have the greatest impact on the DJIA?


A) The stock trading at the highest dollar price per share
B) The stock having the greatest amount of debt in its capital structure
C) The stock having the greatest amount of equity in its capital structure
D) The stock having the lowest volatility

E) B) and D)
F) B) and C)

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For a taxpayer in the 15% marginal tax bracket, a 15-year municipal bond currently yielding 6.2% would offer an equivalent taxable yield of


A) 6.2%.
B) 5.27%.
C) 8.32%.
D) 7.29%.

E) All of the above
F) B) and D)

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