Using the stock prices in Problem 3, calculate the exponential three-month moving average for IBM and Amazon.

Question:

Using the stock prices in Problem 3, calculate the exponential three-month moving average for IBM and Amazon. Place 50 percent of the average weight on the most recent price. How does this exponential moving average compare to your result from Problem 4?

Data From Problem 4

Using the stock prices in Problem 3, calculate the exponential three-month moving average for both stocks where two-thirds of the average weight is placed on the most recent price.

The table below shows the closing monthly stock prices for IBM and Amazon. Calculate the simple three-month moving average for each month for both companies.

IBM AMZN
$169.64.....................$600.36
173.29 ........................613.40
180.13 ........................586.76
195.81 ........................544.10
196.69 ........................529.02
204.49 ........................506.38
222.52 ........................603.69
215.23 ........................540.96
216.23 ........................515.04
213.51 ........................592.64
192.29 ........................599.39
173.10 ........................645.90

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...