Which of the Following Statements Regarding the Short Interest Ratio

question 5

Multiple Choice

Which of the following statements regarding the short interest ratio is true?

• A)It is calculated by the total shares sold short divided by total shares outstanding
• B)It indicates the dollar amount needed to cover all short positions
• C)The higher the ratio,the more bullish investors are
• D)It is the amount of shares sold short divided by average trading volume

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Definitions:

Mm Hg

Millimeters of mercury; a unit of pressure commonly used in medicine and meteorology to measure blood pressure and atmospheric pressure, respectively.

Uniform

Characterized by being the same in all situations, without variation or diversity in detail or condition.

Unimodal

A description of a distribution that has a single peak or mode; characterized by having one predominant value or central tendency.

Six-Sided Die

A common gaming object with six faces, each displaying a different number of dots from one to six.