Ch9behavioral finance and technical analysis.pdf - Assignment Print View 1 of 4 https/ezto.mheducation.com/hm.tpx?todo=printview Suppose Baa-rated bonds

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Suppose Baa-rated bonds currently yield 7%, while Aa-rated bonds yield 5%. Now suppose that due to an increase in the expected inflation rate, the yields on both bonds increase by 1%. What would happen to the confidence index? (Round your answers to 4 decimal places.) Confidence index increases from 0.7143 to 0.7500 . Suppose Baa-rated bonds currently yield 7%, while Aa-rated bonds yield 5%. Now suppose that due to an increase in the expected inflation rate, the yields on both bonds increase by 1%. What would happen to the confidence index? (Round your answers to 4 decimal places.) Confidence index increases from 0.7143 ± 0.001 to 0.7500 ± 0.001 . The confidence index increases from 5%/7% = 0.7143 to 6%/8% = 0.7500. This indicates slightly higher confidence. But the real reason for the increase in the index is the expectation of higher inflation, not higher confidence about the economy. Assignment Print View 1 of 4 11/17/2019, 8:59 PM
Which one of the following would be a bullish signal to a technical analyst using moving average rules?

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