Question

In February 2009, the Dow Jones Industrial Average was at a level of about 8,000. In mid-2018, it was about 24,500. Would you expect the Dow in 2018 to be more or less likely to move up or down by more than 40 points in a day than in 2009

Answer 1

Answer and Explanation:

Given that

There is a level of approx 8,000 in feb 2009

And there is a level of approx in mid 2018 is 24,500

Also there is 40 points

Now based on the above information

Average movement per day in both the cases would be

= 8,000 ÷ 365

= 21.92 point

And,

= 24,500 ÷ 365

= 67.12 points

So it would be more in 2018 as it represent 67.12 points i.e. more than 40 points