WSJ070426 - Econ 520 April 28, 2007 Masao Ogaki Wall Street...

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Econ 520 April 28, 2007 Masao Ogaki Wall Street Journal Articles on Thursday, April 26, 2007 A. Skeptics May Shriek, But Earnings Gains Send Stocks to a High  (on C1) This article reports that the Dow Jones Industrial Average past the 13000 mark for the  first time on Wednesday, April 25, 2007. Problem 1.   What is the main reason for the rise in stock prices according to the  article?   Does it make sense in terms of one of the valuation models we learned in  Chapter 7? Problem 2.   10-year Treasury Bond prices fell on Wednesday, April 25 compared with  the bond prices on Tuesday.  Did the 10-year interest rate rise or fall from Tuesday to  Wednesday?  Other things being equal, does this movement of the interest rate cause  stock prices to rise or fall?  Explain.
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This note was uploaded on 07/17/2008 for the course ECON 520 taught by Professor Ogaki during the Spring '07 term at Ohio State.

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WSJ070426 - Econ 520 April 28, 2007 Masao Ogaki Wall Street...

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