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 | $22.50 | +$0.14 | $0.14 | ||
2 | $22.28 | -$0.22 | $0.22 | ||
3 | $22.32 | +$0.04 | $0.04 | ||
4 | $23.01 | +$0.69 | $0.69 | ||
5 | $22.82 | -$0.19 | $0.19 | ||
6 | $23.41 | +$0.59 | $0.59 | ||
7 | $23.83 | +$0.42 | $0.42 | ||
8 | $23.67 | -$0.16 | $0.16 | ||
9 | $24.02 | +$0.35 | $0.35 | ||
10 | $24.14 | +$0.12 | $0.12 | ||
11 | $23.99 | -$0.15 | $0.15 | ||
12 | $24.54 | +$0.55 | $0.55 | ||
13 | $25.17 | +$0.63 | $0.63 | ||
14 | $25.01 | -$0.16 | $0.16 | ||
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?
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 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.
B. 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.
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 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.
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