Over the last 10 trading days, the average price increase for DB Industries stock was $0.44 and the average drop on down days was $0.88. The relative strength index for DB is
A) 2.
B) 66.67.
C) 50.
D) 33.33.

Question

Quizplus · Accepted Answer

The Relative Strength Index (RSI) is calculated using the formula: RSI = 100 - (100 / (1 + RS)), where RS is the average gain divided by the average loss. Here, RS = 0.44 / 0.88 = 0.5. Therefore, RSI = 100 - (100 / (1 + 0.5)) = 33.33.

Over the Last 10 Trading Days, the Average Price Increase