Review View 3 Mailings A. A E .. + ABCDE ABCDE AaBbccDd AaBbc Normal No Spacing Heading 1 6. Suppose Baa-rated bonds currently yield 6%, while Aa-rated bonds yield 4%. Now suppose that due to an increase in expected inflation the yields on both bonds increase by 1%. The Confidence Index will remain the same as the previous level. a. True b. False Page 2 of 7 7. A rising Relative Strength implies that the stock is underperforming the benchmark. a. True b. False 8. The Short Interest tells us how many stocks are in short supply. a. True b. False The Behavioral Finance School argues that even if stocks are incorrectly priced, it still can be difficult to exploit the mispricing because of human tendencies and biases. a. True b. False BI U 2 ADE E D o T * *