The closing value of the Dow Jones Industrial Average for each trading day for a one-year period
Question:
a. Use the random walk model to forecast the closing price of this index on the next trading day.
b. Would it be wise to use the random walk model to forecast the closing price of this index for a trading day approximately one month after the next trading day? Explain why or why not.
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Related Book For
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe
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