Question

A group of investors was polled each week for the last five weeks about whether they were bullish or bearish concerning the market. Construct the market sentiment index for each week based on these polls. (Do not round intermediate calculations. Round your answers to 4 decimal places.)

Week	Bulls				Bears
1		68			63
2		56			100
3		63			90
4		66			97
5		33			62

MSI

1

2

3

4

5

Answer 1

A sentiment indicator is a graphical or numerical indicator designed to show how people feel about the market. It shows how bullish or bearish people are about the market.

We can calculate MSI by the following way,

Week	Bulls (a)	Bears (b)	c = a+b	MSI (b/c)
1	68	63	131	0.4809
2	56	100	156	0.6410
3	63	90	153	0.5882
4	66	97	163	0.5951
5	33	62	95	0.6526

If you have any doubts please let me know in the comments. Please give a positive rating if the answer is helpful to you. Thanks.