The confidence index published by Barron's is the ratio of the average yield on 10 top grade corporate bonds to the
A) Average yield on 30 blue chip corporate stocks.
B) Average yield on 40 convertible corporate bonds.
C) Yield on Treasury bills.
D) Yield on intermediate-grade bonds.
E) Yield on the Scotia Capital Bond Universe Index

Question

Quizplus · Accepted Answer

The confidence index published by Barron's is calculated as the ratio of the average yield on 10 top grade corporate bonds to the yield on intermediate-grade bonds. This index is used as a measure of investor confidence, with the idea being that a higher ratio indicates higher confidence in the economy.

The Confidence Index Published by Barron's Is the Ratio of the Average