Question

In 1999, James Glassman and Kevin Hassett published a book called "Dow 36,000." At the time, the Dow Jones Industrial Average Index was just under 12,000. Which of the following is a potential substitute for the book title? "The Sum of the Share Prices of All 30 Dow Jones Members Will Triple" "The Sum of the Market Caps of All 30 Dow Jones Members Will Triple" "The Total Market Cap of the Stock Market Will Go Down 36,000 Points" DOW 36,000 Click to enlarge image "The Average Retirement Account of an Industrial Worker Will Triple

Answer 1

The potential substitute for the book title "Dow 36,000" is "The Sum of the Share Prices of All 30 Dow Jones Members Will Triple."

Step-by-step explanation:

The potential substitute for the book title "Dow 36,000" is "The Sum of the Share Prices of All 30 Dow Jones Members Will Triple." This title suggests that the total value of the share prices of all 30 companies in the Dow Jones Industrial Average index would triple. It aligns with the main premise of the book that the Dow Jones Industrial Average would reach 36,000.

Answer 2

The correct substitute for the book title 'Dow 36,000' is 'The Sum of the Share Prices of All 30 Dow Jones Members Will Triple.' This reflects the price-weighted nature of the Dow Jones Industrial Average, which is based on stock prices rather than market capitalization.

Step-by-step explanation:

In the context of the Dow Jones Industrial Average, when we say that the Dow 36,000 is achieved, it indicates that the average price of the stocks in the index has tripled considering it rose from a base of circa 12,000 as mentioned. Hence, the most accurate substitute for the title 'Dow 36,000' from the given options would be 'The Sum of the Share Prices of All 30 Dow Jones Members Will Triple' as this option directly references the collective price movement of the stocks that make up the Dow Jones Industrial Average.