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Strategies & Market Trends : Waiting for the big Kahuna
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To: James F. Hopkins who wrote (12860)1/9/1998 4:31:00 PM
From: Spots  Read Replies (1) of 94695
 
Jim, you're certainly right that a $1 move in GE has the same
effect as a $1 move of UK in the DJIA; I never said otherwise.
But GE at 70 has twice the weight in the DJIA as UK at 35,
that is, it accounts for twice as much of the DJIA value
as UK does (prices for example only). This is known as
a price-weighted average. I didn't make the term up;
that's just what it's generally known as.

Regards
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