Question
Data on a stock's closing price and its price change for the last 14 trading days appears in this table: Day Closing Price Price Change
Data on a stock's closing price and its price change for the last 14 trading days appears in this table:
Day | Closing Price | Price Change | Price Increase | Price Decrease | |
1 | $22.57 | +$0.13 | $0.13 | ||
2 | $22.28 | -$0.29 | $0.29 | ||
3 | $22.33 | +$0.05 | $0.05 | ||
4 | $23.12 | +$0.79 | $0.79 | ||
5 | $22.84 | -$0.28 | $0.28 | ||
6 | $23.36 | +$0.52 | $0.52 | ||
7 | $23.95 | +$0.59 | $0.59 | ||
8 | $23.71 | -$0.24 | $0.24 | ||
9 | $24.01 | +$0.30 | $0.30 | ||
10 | $24.21 | +$0.20 | $0.20 | ||
11 | $23.96 | -$0.25 | $0.25 | ||
12 | $24.52 | +$0.56 | $0.56 | ||
13 | $25.35 | +$0.83 | $0.83 | ||
14 | $25.12 | -$0.23 | $0.23 | ||
a. Over this 14-day period, what is the average gain on up days? (Note: to calculate the average, divide the sum of all gains by 14, not the number of days on which the stock went up.) b. Over this 14-day period, what is the average loss on down days? c. What is the RSI? d. Is the RSI sending a strong buy or sell signal?
a. Over this 14-day period, the average price change on up days is $___. (Round to three decimal places.)
b. Over this 14-day period, the average price change on down days is $__. (Round to three decimal places.)
c. The relative strength index (RSI) is ___ (Round to the nearest whole number.)
d. Is the RSI sending a strong buy or sell signal?(Select the best choice below.)
A. Values below 30 suggest that a stock is oversold, a buy signal. Values above 70 suggest that a stock is overbought, a sell signal. In this case, the RSI is sending a strong sell signal.
B. Values below 30 suggest that a stock is overbought, a sell signal. Values above 70 suggest that a stock is oversold, a buy signal. In this case, the RSI is sending a strong buy signal.
C. Values below 30 suggest that a stock is overbought, a buy signal. Values above 70 suggest that a stock is oversold, a sell signal. In this case, the RSI is sending a strong sell signal.
D. Values below 30 suggest that a stock is oversold, a sell signal. Values above 70 suggest that a stock is overbought, a buy signal. In this case, the RSI is sending a strong buy signal.
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