The short-interest ratio is the shares sold short divided by the

Question

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The short-interest ratio is calculated by dividing the number of shares sold short by the average daily trading volume over a recent period. This ratio gives an indication of how many days it would take for all the shares that have been sold short to be covered by buying back the shares. A higher short-interest ratio may indicate that investors are bearish on the stock, while a lower ratio may indicate bullish sentiment. Choice A is incorrect because it refers to the average shares purchased, not traded, which includes both buys and sells. Choice C is incorrect because it refers to the interest rate paid on the short sale, which is not used in calculating the short-interest ratio. Choice D is incorrect because it refers to the trading volume on other stocks from the same industry, which is not relevant to the short-interest ratio calculation.

The Short-Interest Ratio Is the Shares Sold Short Divided by the