Question: Another way to understand stock market risk is to examine
Another way to understand stock market risk is to examine how investors expect risk to evolve in the near future. The DJIA volatility index (FRED code: VXDCLS) is one such measure. Plot the level of this volatility index since October 1997 and as a second line, the percent change from a year ago of the S&P500 index (FRED code: SP500). Compare their patterns.
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