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From: jin@hropus.UUCP (Jerry)
Newsgroups: net.invest
Subject: Re: Is new Dow Jones High Phoney?
Message-ID: <268@hropus.UUCP>
Date: Thu, 13-Feb-86 08:44:22 EST
Article-I.D.: hropus.268
Posted: Thu Feb 13 08:44:22 1986
Date-Received: Fri, 14-Feb-86 00:33:54 EST
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Organization: Bell Labs, Holmdel, NJ
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Early in my 2.5 year sojourn at Dow Jones and Company (Information
Services Division) I wrote a program that was to be used to provide the
Dow Jones Averages (tm) to the rest of the corporation.  In the past I
taught that the industrial average represents the mean value of one
share each of the original 30 stocks adjusted for splits, mergers,
substitutions, and etc.  To my surprise the average is *still* computed
as a simple sum of of the 30 stock prices divided by a magic number
published weekly in the Wall Street Journal (either Monday or Friday
I think).  Not only do the averages lack current relevence, they lack
their purported historical relevence also.

				Cheers,
				Jerry Natowitz
				ihnp4!houxm!hropus