Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A stock technical analyst uses smoothing methods to predict stock prices.The following table contains the monthly price information for General Mills. Date. Price 1/30/2015 55.33

A stock technical analyst uses smoothing methods to predict stock prices.The following table contains the monthly price information for General Mills.

Date. Price

1/30/2015 55.33

2/27/2015. 52.48

3/31/2015. 53.79

4/30/2015. 56.60

5/29/2015. 55.34

6/30/2015. 56.15

7/31/2015. 55.72

8/31/2015. 58.21

9/30/2015. 56.76

10/30/2015. 56.13

11/30/2015. 58.11

12/31/2015. 57.66

What is the predicted share price for September 30, 2015 if this technical analyst uses an exponential smoothing method with a smoothing constant of .7 and a 5-month moving average as the initial forecast share price for June 30, 2015?

A.$57.46

B.$56.39

C.$56.97

D.$57.30

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mathematical Applications for the Management Life and Social Sciences

Authors: Ronald J. Harshbarger, James J. Reynolds

11th edition

9781337032247, 9781305465183, 1305108043, 1337032247, 1305465180, 978-1305108042

Students also viewed these Finance questions

Question

What is the biggest strength of the program?

Answered: 1 week ago

Question

Can hacking be good? Explain.

Answered: 1 week ago