Question 9 O out of 8 points The nave model implies Answers: A. the use of today's value as a forecast for tomorrow's value B. the smoothing parameter, Alpha, is 1 c. A or B D. None of the above Question 10 0 out of 8 points If we notice over the past 90 trading days that the daily percentage changes in the stock market index and daily percentage changes in prices of a specific stock are approximately similar (on average), and both are moving on the same direction, then we would expect the relationship bet two to be reflected by: Answers: A. a correlation coefficient close to O B. a correlation coefficient close to -1 C. a correlation coefficient close to +1 D. None of the above Question 11 O out of 8 points What is the method used to estimate regression equation? Answers: A. Moving average method B. Least squares method C. Simple exponential method D. All of the above Question 12 O out of 8 points If the daily changes of a specific stock price over time is totally random and is not showing any clear trending behavior, which of the following would smooth out the changes in the daily price the most? Answers: A. moving average of order 5, MA(5) B. moving average of order 10, MA(10) C. moving average of order 15, MA(15) D. moving average of order 20, MA(20)