3. Measuring the Market (25 Points.). Answer the following questions (a) 7 Points. The confidence index is defined as: Confidence Index = Average Yield on 10 High Grade Corporate Bonds Average Yield on 10 Intermediate Grade Corporate Bonds Why does an increase in this index indicates a higher confidence for the state of the financial market? Explain. (b) 6 Points. Why was the TRIN index developed? Why not just use the advance decline line? (Note: Look at your review notes or lecture slides for the formula used to calculate each measure) (c) 6 Points. Suppose you have the following information for the closing stock price of XYZ corpo- ration during the period from April 1 to April 9. Date Stock Price April 1 $72 April 2 $71 April 3 $66 April 4 $65 April 5 $62 April 6 $65 April 7 $61 April 8 $59 April 9 $56 What is the 5 day moving average of XYZ stock on April 6? What is the 5 day moving average of this stock on April 9? (Note: You can just write down how you would compute the actual value for both of these days.) (d) 6 Points. What is the purpose of the moving average statistical measure? What information does it convey