Impact on the confidence index when the expected rate of inflation increase by 1%. Introduction: Confidence index reflects the faith of investor in the security market and the economy. A deteriorating or low confidence index is considered as a bearish sign by the technical analyst. On the other hand, a high or increasing level of confidence index is considered as a bullish sign by technical analyst.

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Chapter 12, Problem 16PS

Summary Introduction

To calculate:

Impact on the confidence index when the expected rate of inflation increase by 1%.

Introduction:

Confidence index reflects the faith of investor in the security market and the economy. A deteriorating or low confidence index is considered as a bearish sign by the technical analyst. On the other hand, a high or increasing level of confidence index is considered as a bullish sign by technical analyst.

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