CFA Practice Question

There are 221 practice questions for this study session.

CFA Practice Question

There are five billion shares sold short in August and the average daily volume on the NYSE for the same period is one billion shares per day. This gives us a NYSE short-interest ratio of ______.

A. 0.2
B. 1
C. 5
Correct Answer: C

5 = five billion /one billion. This means that, on average, it will take five days to cover the entire short position on the NYSE. In theory, a higher NYSE short-interest ratio indicates a more bearish sentiment towards the exchange.

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johntan1979 Bullish for contrarians
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