Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

From the data below, calculate the upper and lower Bollinger bands, which represent plus ( or minus ) two standard deviations of the 2 0

From the data below, calculate the upper and lower Bollinger bands, which represent plus (or minus) two standard deviations of the 20-day simple moving average added (subtracted) from the 20-day simple moving average. If the daily price approaches or exceeds the upper Bollinger band, traders will look for a continued upward movement in the stock price. Graph the 20-day simple moving average, the upper and lower Bollinger bands, and the price of the stock. Does the graph tell you that traders expect continued strength or weakness in the stock price?
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
\table[[Date,\table[[AAPL],[Close]],\table[[20-Day Simple],[Moving Average]],\table[[Standard Deviation of],[20-Day Moving],[Average]],\table[[Lower],[Bollinger Band]],\table[[Upper],[Bollinger Band]]],[326?2022,186.79,180.88,3.40,,],[327?2022,188.47,181.50,3.60,,],[328?2022,188.72,182.18,3.80,,],[329?2022,189.95,182.96,4.00,,],[41?2022,191.24,183.71,4.20,,],[42?2022,194.02,184.48,4.39,,],[43?2022,195.35,185.40,4.57,,],[44?2022,195.69,186.45,4.72,,],[45?2022,197.00,187.61,4.86,,],[48?2022,200.10,188.81,4.99,,],[49?2022,199.50,189.87,5.10,,?
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Fundamental Accounting Principles

Authors: Larson Kermit, Tilly Jensen

Volume I, 14th Canadian Edition

978-0071051507

Students also viewed these Finance questions