CFA Practice Question

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CFA Practice Question

The days-to-cover ratio refers to ______.

A. margin debt ratio
B. short interest ratio
C. put/call ratio
Correct Answer: B

The short interest ratio indicates, given a stock's average trading volume, how many days it will take short sellers to cover their positions if positive news about the company lifts the price. The ratio is used by both fundamental and technical traders to identify the prevailing sentiment the market has for a specific stock.

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gill15 Very good young johntan.
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