The evil twin of arithmetic nice. A fancy term for the average of a group of numbers. Yeah, seriously, you add up all the numbers and divide the total by how many numbers you have.
In three consecutive months, we showed percentage returns of 3.2%, 1.7% and 0.05%. Our average return over those three months can be found by adding 3.2, 1.7, and 0.05 to get 5.4, and then dividing that by 3 to get an average return over the three months of 1.8%. That’s all. Move along. There’s nothing more to see here.
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Finance: What is the Dow Jones Industria...2710 Views
finance a la shmoop- what is the Dow Jones Industrial Average? well it's just
an index. it's a basket of 30 industrial stocks hence the catchy industrial word [list of the 30 stocks involved in the Dow]
in there and it was started in 1896 by Charles Dow and Edward Jones sort of the
Coke and Pepsi of stock averages in the day .worth noting is the fact that while
the Dow average is quoted often in the press it's not something that real Wall
Street traders really rely on that much as a market place holder anymore. why?
well because the Dow comprises only 30 stocks. it isn't really a broad market [Dow Jones in the trash]
representation, and you know the way the S&P 500 is the 500 is bigger than 30. Big
Brother has way more stocks and is thus way more liquid than the relatively
blippi set of 30 stocks that the Dow offers. over time the Dow has changed as
companies were bought and/or died and or just withered and became no longer
relevant. i.e. newspaper industry. which means that this thing has gone through
more faces than Kanye West .yeah. [Kanye West faces pictured]
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