The Dow Jones Industrial Average Index has an unusual weighting methodology . Unlike the S&P 500, it is weighted by share price. Here are 20 of the 30 members of the Dow Jones on March 20, 2019. If all the shares went up by 5%, which share on the screen shown would have the biggest contribution to an upward movement in the Index ?

Respuesta :

Answer: Goldman Sachs

Explanation:

If all shares rose by 5% in the value, the biggest contributor to the S&P 500 's upward movement would be the one with the highest weight from the listed options.

From the options listed, Apple has a weight of 4.955 , General Electric is not listed, Exxon Mobil has a weight of 2.1417 and Goldman Sachs has a weight of  5.1177.

Goldman Sachs has the largest weight and so would contribute the most.

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