Question

On June 16, 1995, the DJIA closed at $4,510.79. Assume the index lost 135 points on the next trading day. Compare that to a 500-point loss against the current level of the DJIA. Which occurrence would be more impactful? (Find percent change in index before answering each question)

Answer 1

Answer:

The occurrence would be more impactful in 1995 as the % drop is higher

Explanation:

In 1995, % change in DJIA = 135 / 4510.79 = 0.029928 = 2.99%

Today, the DJIA is at 29,263.48 . The % change in DJIA = 500 / 29,263.48 = = 0.017086143 = 1.71% .

Thus, In 1995, the occurrence would be more impactful as the % drop is higher