P roblem & solution graphic organizer

P ROBLEM & SOLUTION GRAPHIC ORGANIZER

Solution


“Average” for the stock market as a whole. If the average was up, the market was up, and if the average was down, the market was down

Chose 12 large corporations, 12 companies and divided by 12, This was the first value for the DJIA. As Dow had hoped, it suddenly became easy for the public to follow the market’s direction just by comparing his average from day to day, month to month, or year to year

only 2 stocks (rather than 30): Stock A with a price of $100 and Stock B with a price of $50. The mean price of these two stocks is (+100 + +50)/2 = +75.

To keep the “value” of the DJIA constant

P ROBLEM

1 Dow Jones Industrial Average is a key to learn how to invest money which means earn money by online (internet). Before, put your many to something you have to know how much many you should invest in order to win, in this situation we use DJIA method, the method use for finding average value in stocks for that we have to calculate the maximum value and minimum after we have to divide them and finding average point of value which means its increase chance to win in online market stocks

2. As we can see that figure belongs to the Dow Jones Industrial average of monthly value. At the beginning of the industrial Average had grown with stability, overall, this subsequent indicator shows that this process begins to grow at a noticeable rate, but this is not so much a balance sheet as in previous years. In additional, during the time Down Jones Industrial average value felt which means that a few years has changed by a sharp drop of predicting values, unfortunately most of economics were believe that forecasts are impossible and not performance. Recently, this figure has illustrated major developments which has been DJIA increased till recently years. In conclusion, as we witnessed on figure the information of DJIA’s value is increasing faster than in the past.

3. Professor Graham’s opinion was mistake when his students came to him for some investment advice. Professor Graham told that the DJIA then stood at 250, but that it had fallen below 200 at least once during every year since its inception in 1896. Because it had not yet fallen below that reason, he gave advice to student do not invest, but the student invested and became a billionaire. Unfortunately, Professor Graham’s predict was incorrect about fall 200 in 1951