Question
The Percentage of individual investors portfolios committed to stock depens on the state of the community. The following table resports the percentage of stocks in
The Percentage of individual investors portfolios committed to stock depens on the state of the community. The following table resports the percentage of stocks in a portfolio for nine quarters.
| Quarter | Stock | Quarter | Stock |
| 1 | 29.8 | 6 | 31.5 |
| 2 | 31.0 | 7 | 32.0 |
| 3 | 29.9 | 8 | 31.9 |
| 4 | 30.1 | 9 | 30.0 |
| 5 | 32.2 |
A. USe exponential smoothing to forecast this time series. Consider smoothing constants of 
=0.2,0.3, and 0.4. What value of the smoothing constant provides the best forecast?
B. What is the forecast of the percentage of assets committed to stocks for the next quarter?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Shipping Finance A Practical Handbook
Authors: Stephenson Harwood
4th Edition
1787421406, 978-1787421400
