Case Problem 9.2

Deb Takes Measure of the Market

Questions

Based on the data presented in the table, calculate a value (where appropriate) for periods 1 through 5, for each of the 4 measures listed above. Chart your results, where applicable.

Discuss each measure individually and note what it indicates for the market, as it now stands. Taken collectively, what do these 4 measures indicate about the current state of the market? According to these measures, is this a good time for Deb to consider getting into the market, or should she wait a while? Explain.

Comment on the time periods used in the table, which are not defined here. What if they were relatively long intervals of time? What if they were relatively short? Explain how the length of the time periods can affect the measures.