In the latter part of 2008, stock markets around the world declined significantly. Exhibit 1.8 shows two graphs depicting the Standard and Poor€™s Toronto Stock Exchange Composite Index for the period from January 2, 2007 to March 27, 2009. Which graph is the better representation of the index during this time period, and why?

Transcribed Image Text:

Standard and Poor's Toronto Stock Exchange Composite Index January 2, 2007 to March 27, 2009 16,000 15,000 14,000 13,000 12,000 11,000 10,000 9,000 8,000 7,000 02/01/200 0z/01/2007 02/07/2007 a2/o1/200s azj0rj200s Standard and Poor's Toronto Stock Exchange Composite Index January 2, 2007 to March 27, 2009 I6,000 14,000 12,000 10,000 R000 600 4,000 2,000 02/01/2007 a2/07/2007 az/01/200s a2/07/200s 02/01/2009 acno