Another way to understand stock market risk is to examine how investors expect risk to evolve in

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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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Money Banking and Financial Markets

ISBN: 978-0078021749

4th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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