Portfolio Management
Contents 1.0 Introduction 1 2.0 Objective 2 3.0 Methodology 3 4.0 Graphical Plot For New Index 4 5.0 Performance Analysis 6 5.1 NASDAQ 6 5.2 RUSSELL 7 5.3 S&P 500 8 5.5 NYSE ARCA MINI-OIL INDEX 10 6.0 Conclusion 11 7.0 Reference 12
1.0 Introduction
People on Wall Street found it difficult to analyze the daily jumble of up-a-quarter and down-an-eight, or whether stocks generally were raising, falling or staying even. Charles Dow a journalist devised his stock average to make sense of this confusion. He began in 1884 with eleven stocks, most of tem are railroads. Railroads were among the biggest and sturdiest companies in America at that time, which is why they denominated Dows first average. Few stocks of industrial companies were publicly traded and those were considered highly speculative. The Dow Jones Industrial Average also referred to as The Dow or DJIA, is one of the best known icons of American culture and among stock market observes around the world.
The Dow Jones Industrial Average dating to 1896 is a continuous index measuring the movement of the stock market from the Spanish to American War to the present time. The original 12 stock index was broadened in 1916 to 20 stock and again in 1928 to the present number of 30 stocks and over the following years numerous substitutions were made in the components of the average. The last change was in 1939, and thus one can think of the index as being entirely cohesive for only the past fourteen years.
The name of the early components is reminiscent of the industrial era at the turn of the century that is American Cotton Oil, American Spirits Manufacturing, Pacific Mail Stearnship, Standard Rope & Twine and Chicago Gas. Of the 30 names in 1982, only 18 remain include those who are removed and later put back into the average. The youngest components are AT&T and United Craft.
The Dow Jones Industrial Average is an index of 30 ‘blue-chip’ US stocks. At 117
1.0 Introduction
People on Wall Street found it difficult to analyze the daily jumble of up-a-quarter and down-an-eight, or whether stocks generally were raising, falling or staying even. Charles Dow a journalist devised his stock average to make sense of this confusion. He began in 1884 with eleven stocks, most of tem are railroads. Railroads were among the biggest and sturdiest companies in America at that time, which is why they denominated Dows first average. Few stocks of industrial companies were publicly traded and those were considered highly speculative. The Dow Jones Industrial Average also referred to as The Dow or DJIA, is one of the best known icons of American culture and among stock market observes around the world.
The Dow Jones Industrial Average dating to 1896 is a continuous index measuring the movement of the stock market from the Spanish to American War to the present time. The original 12 stock index was broadened in 1916 to 20 stock and again in 1928 to the present number of 30 stocks and over the following years numerous substitutions were made in the components of the average. The last change was in 1939, and thus one can think of the index as being entirely cohesive for only the past fourteen years.
The name of the early components is reminiscent of the industrial era at the turn of the century that is American Cotton Oil, American Spirits Manufacturing, Pacific Mail Stearnship, Standard Rope & Twine and Chicago Gas. Of the 30 names in 1982, only 18 remain include those who are removed and later put back into the average. The youngest components are AT&T and United Craft.
The Dow Jones Industrial Average is an index of 30 ‘blue-chip’ US stocks. At 117