Question
How well does the stock market anticipate the behavior of the economy? Plot since 1950 the percentage change from a year ago of the Dow
How well does the stock market anticipate the behavior of the economy? Plot since 1950 the percentage change from a year ago of the Dow Jones Industrial Average. Is the index a reliable predictor of business cycle downward turns (depicted by the graph by vertical, shaded bars)?
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
