The ________ Index is the ratio of Barron's average yield on 10 top grade corporate bonds to the yield on the Dow Jones average of 40 bonds.
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A. B. C. D.Explanation
By definition, the Confidence Index is the ratio of Barron's average yield on 10 top grade corporate bonds to the yield on the Dow Jones average of 40 bonds. This index measures the difference in yield spread between premium grade bonds with a large cross section of bonds.