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.
