Final answer:
The purpose of creating a small portfolio consisting of the top dogs of the Dow is to invest in the top dogs of the Dow. This can help diversify your investment portfolio and potentially achieve long-term growth. Studying the behavior of the top dogs of the Dow can also provide insights for informed investment decisions.
Step-by-step explanation:
The purpose of creating a small portfolio consisting of the top dogs of the Dow is to invest in the top dogs of the Dow. By selecting the top-performing companies in the Dow Jones Industrial Average, you are aiming to generate a return on your investment by participating in the success of these companies.
Investing in the top dogs of the Dow can be a way to diversify your investment portfolio and potentially achieve long-term growth. Diversification involves spreading your investments across different assets to reduce risk and increase potential returns. By including the top dogs of the Dow in your portfolio, you are adding a selection of well-established and successful companies to your investment mix.
Studying the behavior of the top dogs of the Dow can also be a part of the portfolio's purpose, as it allows you to analyze market trends, company performance, and economic factors that impact these companies. This knowledge can help you make informed investment decisions and understand the dynamics of the stock market.