Figure 11 State Street Corporation (STT) Daily Chart [7].
With a beta of 1.10 (see corresponding figure in Chapter Four), JPMorgan Chase finished
our second week of simulation slightly higher (up 1.7%), not a bad result compared to the 1.41%
gain in the broader financial sector but no less disappointing considering the Dow’s 1.93% rise
and S&P 500’s 1.98% rise over the same period. Meanwhile, Bank of America, with three
consecutive gaining days and one flat day on Friday, finished the week 6.58% higher, impressive
even given its beta of 2.39 [8]. Going forward if the market comes back on an up-trending path,
we may need to under-weigh JPMorgan Chase and slightly over-weigh Bank of America with
caution.