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Gather monthly closing prices for the Dow Jones Industrial Average (DJIA) from 1965 until the present. One publicly available source for this data can be found electronically at http://finance.yahoo.com using the ticker symbol ^DJI. Under "quotes," choose the "historical prices" option. At this point, you will be able to choose a monthly data option and download the data into a spreadsheet.

a. Graph the monthly data for the DJIA for the 1965 through 1980 time period. Was the market in an uptrend, downtrend, or sideways trend during that time? Explain your answer.

b. Graph the monthly data for the DJIA for the 1980 through 1990 time period. Was the market in an uptrend, downtrend, or sideways trend during that time? Explain your answer.

c. Graph the monthly data for the DJIA for the 1990 through 2000 time period. Was the market in an uptrend, downtrend, or sideways trend during that time? Explain your answer.

d. Graph the monthly data for the DJIA from 2000 until the present. Has the market been in an uptrend, downtrend, or sideways trend? Explain your answer.

e. Comparing the four charts that you have generated, what conclusions do you draw about historical market trends?

Financial Econometrics, Finance

  • Category:- Financial Econometrics
  • Reference No.:- M91987677

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