as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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what governs the shape of price history graphs?
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dividend-paying securities generally have predictable cash flows. a telecom, electric or gas utility is a great example. they collect a fairly predictable amount of money and sells goods at a fairly predictable or even regulated markup. it is easy for these companies to pay a consistent dividend since the business is "sticky" and insulated by cyclical factors. more cyclic investments like the dow jones industrial average, gold, etc are more exposed to the crests and troughs of the economy. they swing with the economy, although not always on the same cycle. the djia is a basket of 30 large industrial stocks. gold is a commodity that spikes when people are faced with uncertainty. the "alpha" and "beta" of a stock will give you some idea of the general behavior of a stock against the entire market, when the market is trending up and down respectively.
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