The Confidence Index Indicates a Strong Stock Market When the

question 43

Multiple Choice

The confidence index indicates a strong stock market when the

• A) ratio of the average yield on high-grade corporate bonds to the average yield on low-grade corporate bonds rises.
• B) ratio between the average yield on S&P 500 stocks to the average yield on high-grade corporate bonds rises.
• C) consumer confidence index rises above its long-term trend.
• D) demand for bonds declines relative to the demand for equity securities.