Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(b) An investment agent intends to use moving average to observe the trend of one of his stock. He obtained the share price of his

image text in transcribed

(b) An investment agent intends to use moving average to observe the trend of one of his stock. He obtained the share price of his stock for the past 7 months, from JAN 2021 to JULY 2021 as stated in the table below. JAN FEB MAR APR MAY JUN JUL Month 2021 2021 2021 2021 2021 2021 2021 Share price (RM/unit) 1.52 1.602.10 2.32 2.90 2.38 2.65 (i) Use a 3-months moving average of the share price to forecast for the month of MAY 2021 and find the forecast error. (Please round the forecasted figures to 2 decimal places). (3 marks) (ii) Use a 5-months moving average of the share price to forecast for the month of JUN 2021 and find the forecast error. (Please round the forecasted figures to 2 decimal places). (4 marks)

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

Options Futures And Other Derivatives

Authors: John C. Hull

4th Edition

0130224448, 9780130224446

More Books

Students also viewed these Finance questions

Question

Use your favorite search engine to find the IRS

Answered: 1 week ago

Question

What does this key public know about this issue?

Answered: 1 week ago

Question

What is the nature and type of each key public?

Answered: 1 week ago

Question

What does this public need on this issue?

Answered: 1 week ago