Question 5: 16 Marks (a) On a given trading day, 700 stocks advanced, and 1,200 stocks declined. The volume of declining stocks was 280 million while the volume of advancing stocks was 530 million. What is the TRIN index value for the day? According to technical analysis how the stock market has behaved on that day. (5 marks) (b) Suppose that the average P/E multiple in the oil industry is 22. Exxon is expected to have an EPS of $1.50 in the coming year. The stock of Exxon is selling in the market for $40. Will you invest in Exxon stock? Explain your answer. (5 marks) (c) At the end of March 2020, the average yields on 10 top-rated corporate bonds and 10 intermediate-grade bonds were 7.65% and 8.42%, respectively. At the end of April 2020, the average yields on 10 top-rated corporate bonds and 10 intermediate-grade bonds were 6% and 6.71%, respectively. Compute the confidence index for these two months and interpret the trend in the stock market using these ratios that were computed from the information provided by the bond market. (6 marks)