Market Indexes

Market Indexes - 5-1Uses of Security-Market IndexesAs...

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Unformatted text preview: 5-1Uses of Security-Market IndexesAs benchmarks to evaluate the performance of professional money managersTo create and monitor an index fundTo measure market rates of return in economic studiesFor predicting future market movements by technicians As a substitute for the market portfolio of risky assets when calculating the systematic risk of an asset 5-2Factors Affecting Market IndexesThe SampleSizeBreadthSourceWeighting of Sample MembersPrice-weighted seriesValue-weighted seriesUnweighted (equally weighted) series5-3Stock-Market IndexesPrice Weighted IndexDow Jones Industrial Average (DJIA)Nikkei-Dow Jones AverageValue-Weighted IndexNYSE CompositeS&P 500 Index Unweighted IndexValue Line AveragesFinancial Times Ordinary Share Index5-4Dow Jones Industrial Average (DJIA)Best-known, oldest, most popular seriesPrice-weighted average of thirty large well-known industrial stocks, leaders in their industry, and listed on NYSE...
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Market Indexes - 5-1Uses of Security-Market IndexesAs...

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