Technicians Using the Confidence Index Published by Barrons to Make

question 24

Multiple Choice

Technicians using the confidence index published by Barrons to make investment decisions

• A) Believe the ratio is a bullish indicator because during periods of high confidence investors will invest in higher quality bonds.
• B) Believe the ratio is a bearish indicator because during periods of high confidence investors will invest in higher quality bonds.
• C) Believe the ration is a bearish indicator because during periods of high confidence investors will invest in lower quality bonds.
• D) Believe the ration is a bullish indicator because during periods of high confidence investors will invest in lower quality bonds.
• E) None of the above.

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Definitions:

Incomplete

Characterizing something as not fully finished, lacking some parts, or not comprehensive.

Transitive

A relation is described as transitive if, whenever it relates some A to B and B to C, it also relates A to C.

Marginal Rate of Substitution

The rate at which a consumer is willing to give up one good in exchange for another good while maintaining the same level of utility or satisfaction.

Perfect Substitutes

Two goods for which consumers are completely indifferent as to which to consume, meaning the consumption of one good can fully replace consumption of the other.