In 2000, the Dow Jones Industrial Averages range was 11,7239,796. Using the return for large stocks in

Question:

In 2000, the Dow Jones Industrial Average’s range was 11,723–9,796. Using the return for large in Exhibit 10.2, what should have been the range in the Dow Jones Industrial Average for 2006 if those returns had continued to be achieved for 2000 through 2006? Compare your estimated range with the actual range. What inference(s) can you draw? During 1973, the range of the Dow Jones Industrial Average was 1,052–788 and during 1982, the range was 1,074–766. Do you see any similarities between the two time periods (1973–1982 and 2000– 2006)? What do these time periods suggest about using a buy and hold strategy or an index strategy?

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...