单选题 The DJIA is a biased measure and has been criticized. Which of the statements below regarding the bias and criticisms of a price-weighted series is false?

A. Because it is price weighted, when companies have a stock split, their prices decline, and therefore their weight in the DJIA is reduced.
B. The weighting scheme causes a downward bias in the DJIA, because the stocks that have higher growth rates will have higher prices.
C. Because the series is price weighted, a high-priced stock carries more weight than a low priced stock.

【正确答案】 C

【答案解析】The DJIA is a biased measure and has been criticized. The bias and criticisms leveled at a price-weighted series include: Because it is price weighted, when companies have a stock split, their prices decline, and therefore their weight in the DJIA is reduced ; The weighting scheme causes a downward bias in the DJIA, because the stocks that have higher growth rates will have higher prices; Because the series is price weighted, a high-priced stock carries more weight than a low priced stock.