Putting it all together

Materiality

Sometimes, a bunch of immaterial things can add up to something material. So, it’s not just enough to check the impact of our index for one thing at a time. Perhaps, if we add all of the things we are testing for all at once, we will see an emergent difference:

That’s not the case here! Ultimately, we see the big spikes caused by IBM and AIG, which we want to leave out of the sample. We see some slight variance overall with the addition of ten big banks and 85 important IPOs (like AMZN, GOOG, and FB) but nothing crazy. In aggregate, our combined materiality fears don’t come true here.

Our 100 company sample is almost done then, we just need to find some benchmarks to compare it to for a sanity check. I’ll check out two in the next post.

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