CFA Practice Question

CFA Practice Question

Which of the following is most likely correct?
A. Confidence index and margin debt are contrary opinion indicators.
B. Mutual fund cash position and CBOE Put/call ratio are smart money indicators.
C. Short interest is a general market indicator.
Explanation: Confidence index and margin debt are smart money indicators. Mutual fund cash position and CBOE Put/call ratio are contrary opinion indicators.

User Contributed Comments 3

User Comment
praj24 Smart Money Indicators:
- Confidence Index
- Margin Debt

General Market Indicators:
- Breadth of Market
- Short Interest
vncld Isnt Short interest supposed to be a Sentiment indicator?
connor15 Yes. A short interest is the quantity of stock shares that investors have sold short but not yet covered or closed out. Short interest is a market-sentiment indicator that tells whether investors think a stock's price is likely to fall. Short interest can also be compared over time to examine changes in investor sentiment. Investors use short interest to make predictions about the direction a particular stock is headed, and to measure the bullishness or bearishness of investors' sentiment towards the market as a whole.
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