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Collect the close index of DJIA for Sep 3 and Sep 4, 2020. Calculate the changes in index from Sep 3, 2020 to Sep 4, 2020.

  1. Relate the changes in index to the dollar amount in detail with respect to the sum and average of DJIA component stock prices..
  2. Collect close prices of all 30 component stocks of DJIA on September 4, 2020. Calculate the sum and average of stock prices of 30 component stocks. Then, calculate sum of stock prices of 30 component stocks using multiplication of the close index on Sep 4, 2020 and current divisor. Finally, comment on the results of the two calculations.
  3. Out of the 30 component stocks of DJIA, explain which stock(s) played significant role in increase or decrease of the index for each day. DJIA is a price-weighted (market) index. Explain what it means.
  4. Explain the DJIA (or Dow) divisor in detail. Explain the typical reason for the changes in the divisor.
  5. Recently, after changes in three component stocks at the end of August 28, 2020 trading, DJIA is being calculated using a new divisor from August 31, 2020. What is the major reason for the changes in the divisor?
  6. Explain why the DJIA is important.

Sample Solution

Plato argues that there is a difference between sense-perception and knowledge. Many of us assume that we know the world through our eyes. All we have to do is open our eyes and whatever is in front of us is real. When learning philosophy, the study of knowledge is called epistemology. Plato a well-known philosopher famously defined knowledge as “justified true belief”. Plato postulated that a reality outside of what a common human experiences exists. He goes to prove his theory by comparing human experiences through their senses to those of the caveman looking at shadow play on the cave walls. The cavemen have never really experienced anything but they are forced to believe that there is a reality thanks to those shadows. Plato claims that there is a reality outside of that. For instance, when talking about cavemen, there is something or someone outside the cave that helps project those shadows. There is always a source of light for example the sun which proved the light, a whole world exists outside of the cave but since the caveman is focused on the shadows they don’t even notice that. To the caveman the shadows are a reality so anything that isn’t a shadow isn’t real. Plato argues that it doesn’t matter how accurately our senses can detect the shadows the argument is that there is a reality outside of what our senses can perceive. The original philosophy argument, from Plato 2500 years ago, didn’t doubt sense impressions as such: The cave analogy assumes that the sense impressions of the caveman accurately reflected the shadow play on the cave wall. Many philosophers including Plato argue that there is an entire world outside of what a normal human perceives. In simple words, the answer to the question is that you could always be missing something. Platonic realism, the theory of reality which was developed by Plato. It states that the visible world of things is an exhibition, similar to shadows on the wall. Whereas the visible world of particulars is unreal, the Theory of Forms occupy the unobservable yet true reality and are real. Plato considered that the mind is the one thing that can access the timeless reality of truths, the realm of the Forms casting the visible world. The famous allegory of the cave, Plato suggests that humans only know the real world as shadows of the real things they see interacting on a wall. Plato’s character Socrates suggests that knowledge is not perception because if “perceiving” is equivalent to “knowing,” then when one does not perceive a thing, he no longer possesses t>

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