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how to calculate dow jones industrial avg. divisor?

September 17th, 2008 · No Comments

I know the super simple fact, that the divisor is simply used to exclude splits, so to maintain the index unchanged after split occurs.

But problem is, folks, the dow jones includes 30 stocks, and if you look at their prices, none of ‘em is higher than 100 dollars per stock, yet we have a “average” price of these 30 stocks, being 12,000 dollars!!??

PLEASE HELP!

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