Imagine that the Mini-Dow Average (MDA) is based on the closing prices of 5 stocks. The divisor used in the calculation of the MDA is currently 0.765.
The closing prices for each of the 5 stocks in the MDA today and exactly 1 year ago, when the divisor was 0.790, are given in the accompanying table.
Calculate the MDA today and that of a year ago.
Compare the values of the MDA calculated in part a and describe the apparent market behavior over the last year. Was it a bull or a bear market?
|
Stock
|
Today
|
1 Year Ago
|
|
Ace Computers
|
$65
|
$74
|
|
Coburn Motor Company
|
37
|
34
|
|
National Soap & Cosmetics
|
110
|
96
|
|
Ronto Foods
|
73
|
72
|
|
Wings Aircraft
|
96
|
87
|