Answer:
b). The average value of the 30 blue-chip stocks is down by 3.2%.
Explanation:
'Dow Jones Industrial Average' also known as 'DJIA' is characterized as the standard indicator to denote the stock-market prices of the shares of the major companies associated with blue-chip in the United States.
As per the question, a down or fall in DJIA by 3.2% would indicate that the stock prices of the companies trading with 'blue-chip' have faced a reduction in their share prices by 3.2% for that day. So, this allows the investors to keep a check on the stock prices and invest accordingly whenever they find it profitable. Thus, <u>option b</u> is the correct answer as the other options fail to convey this idea rather they either talk about the loss of value instead of decrease(in options a and c) or disassociates the entire concept with the stock market(in option d).
Answer:
a. 12%
b. 8.74%
Explanation:
The computations are shown below:
a. The average annual return on large company stock from 1926 through 2016 is 12% which is already mentioned in the question
b. Real rate of return = {( 1 + nominal rate of return) ÷ ( 1+ inflation rate)} - 1
= {( 1 + 0.12) ÷ ( 1 + 0.03)} - 1
= (1.12 ÷ 1.03) - 1
= 1.08737 -1
= 0.08737
= 8.74%
Lowest because to show how scarce it is it will have to be low
<span>one result of international trade is that it creates new markets</span><span>
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