On March 9 2009 the Dow Jones Industrial Average reached a n

On March 9, 2009, the Dow Jones Industrial Average reached a new low at a close of 8,548.05, which was down 96.85 that day What was the return (in percent) of the stock market that day? (Negative answer should be indicated by a minus sign. Round your answer to 2 decimal places.) 2 of 32 Next >

Solution

On March 09, 2009, DJIA closes at 8,548.08 and down by 96.85

P1 = 8,548.08, P1 - P0 = -96.85

P0 = 8,548.08 + 96.85

Return on stock market = P1 / P0 - 1

Return on stock market = 8,548.08 / (8,548.08 + 96.85) - 1 = -0.011203 = -1.12%