Stocks for the Long Run : the Definitive Guide to Financial Market Returns and Long-term Investment Strategies
because modern portfolio theory was established when the academic profession believed in the random walk theory of security pric ...
CONCLUSION No one denies that in the short run stocks are riskier than fixed-income assets. But in the long run, history has sho ...
3 CHAPTER STOCK INDEXES Proxies for the Market It has been said that figures rule the world. JOHANNWOLFGANGGOETHE, 1830 MARKET A ...
an automated electronic market that began in 1971, has become the ex- change of choice for technology companies. The Nasdaq inde ...
Keta’s assets. Shares in U.S. Leather, which in 1909 was the seventh- largest corporation in the United States, became worthless ...
The Dow Industrials is a price-weighted index, which means that the prices of the component stocks are added together and then d ...
The inflation-corrected Dow has stayed within the channel about three-quarters of the time. When the Dow broke out of the channe ...
propelled nominal stock prices justifiably above their previous, noninfla- tionary trend. Those who used trend-line analysis and ...
A base value of 10 was chosen for the average value of the S&P index from 1941 to 1943 so that when the index was first publ ...
Some, such as Intel and Microsoft, chose not to migrate to the Big Board, as the NYSE was termed, even when they qualified to do ...
stock is listed on. Small stocks may be better served by having a special- ist provide liquidity, but the spread between the pri ...
RETURN BIASES IN STOCK INDEXES Because stock indexes such as the S&P 500 Index constantly add new firms and delete old ones, ...
An index is not biased if its performance can be replicated or matched by an investor. To replicate an index, the date of additi ...
American Tobaccochanged its name to American Brands (AMB) in 1969 and to Fortune Brands (FO) in 1997, a global consumer products ...
Tennessee Coal and Ironwas bought out by U.S. Steel in 1907, and it became USX-U.S. Steel Group (X) in May 1991. In January 2002 ...
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4 CHAPTER THE S&P 500 INDEX A Half Century of U.S. Corporate History Most of the change we think we see in life is due to tr ...
vesting in large U.S. stocks was compared. The S&P 500 Index originally contained exactly 425 industrial, 25 rail, and 50 ut ...
The GICS divides the economy into 10 sectors: materials(chemi- cals, papers, steel, and mining), industrials (capital goods, def ...
changes have been dramatic. The materials sector, by far the largest in 1957, has become the smallest today. The materials and e ...
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