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1 . Another way to understand stock market risk is to examine how investors expect risk to evolve in the near future. The DJIA volatility

1. Another way to understand stock market risk is to examine how investors expect risk to evolve in
the near future. The DJIA volatility index (FRED code: VXDCLS) is one such measure. Plot the level
of this volatility index at a monthly frequency since October 1997 and, as a second line, the
percent change from a year ago of the Wilshire 5000 index, also at a monthly frequency (FRED
code: WILL5000PR). Compare their patterns.

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