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a) Moving averages are often used in an effort to identify movements in share prices. Approximate monthly closing prices (in Sh. per share) for Glutec
a) Moving averages are often used in an effort to identify movements in share prices. Approximate monthly closing prices (in Sh. per share) for Glutec Ltd. for December 2018 through November 2019 are shown below: Required: i) Use a 3-month moving average to forecast the closing price for December 2019. (5 marks) ii) Use a 3-month weighted moving average to forecast the closing price for December 2019 . Use weights of 0.4 for most recent period, 0.4 for the second period back and 0.2 for the third period back. ( 5 marks)
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