- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 67. Technical Analysis
- Subject 5. Technical Indicators
CFA Practice Question
When the average loss is zero, RSI becomes ______.
A. zero
B. 50
C. 100
Explanation: A "divide by zero" situation occurs for RS and RSI is set to 100 by definition. Assuming a 14-period RSI, this means that prices moved higher or remained the same all 14 periods. There were no losses to measure.
User Contributed Comments 2
| User | Comment |
|---|---|
| mrpman | what is rsi? |
| davcer | relative strenght index |