The percentage of individual investors portfolios committed to stock depends on the state of the economy. The

Question:

The percentage of individual investorsâ€™ portfolios committed to stock depends on the state of the economy. The following table reports the percentage of stocks in a portfolio for nine quarters:

a. Use exponential smoothing to forecast this time series. Consider smoothing constants of Î± = 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 nextquarter?

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...