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.

Question

Want to see the full answer?

Answer 1

Question

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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Citibank is a US Bank which lost US$500 million due to human error in August 2020. Read the case noted in the link below, and answer the following questions: https://finopsinfo.com/investors/citis-900m-blunder-casts-light-on-poor-loan-ops/ Develop a risk management programme appropriate for this case (use attached template) Explain how compliance to this risk management programme can prevent the operation risk issue experienced by Citibank. Discuss the importance of an internal risk assessment and auditing process in relation to this case Step 1 Risks Brief description & how it relates to the case Step 2 List of possible risks Likelihood/Probability of occurrenceH/M/L or Nil Impact (if occurred)H/M/L or Nil What is being done about it now What more can be done about it Dept. where risk exposure exists Step 3 Risk identified Impact (if occurred)H/M/L…

Citibank is a US Bank which lost US$500 million due to human error in August 2020. Read the case noted in the link below, and answer the following questions: https://finopsinfo.com/investors/citis-900m-blunder-casts-light-on-poor-loan-ops/ Develop a risk management programme appropriate for this case (use attached template) Explain how compliance to this risk management programme can prevent the operation risk issue experienced by Citibank. Discuss the importance of an internal risk assessment and auditing process in relation to this case

Need answer correctly if image is blurr then please comment i will write values. dont give answer with incorrect data . i will give unhelp