Question
In: Finance
Using the stock prices in Problem 3, calculate the exponential three-month moving average for both stocks...
Using the stock prices in Problem 3, calculate the exponential three-month moving average for both stocks where two-thirds of the average weight is placed on the most recent price.
| Amazon | |
| $169.64 | $600.36 |
| $173.29 | $613.40 |
| $180.13 | $586.76 |
| $195.81 | $544.10 |
| $196.69 | $529.02 |
| $204.49 | $506.38 |
| $222.52 | $603.69 |
| $215.23 | $540.96 |
| $216.23 | $515.04 |
| $213.51 | $592.64 |
| $192.29 | $599.39 |
| $173.10 | $645.90 |
Solutions
Expert Solution
The 1st step is to compute the simple three month moving average. Simple 3 month moving average = sum of last 3 months price/3
| Amazon | 3 month moving total | 3 month moving average | 3 month moving total | 3 month moving average | ||
| 169.94 | 600.36 | |||||
| 173.29 | 613.40 | |||||
| 180.13 | 586.76 | |||||
| 195.81 | 523.36 | 174.45 | 544.10 | 1,800.52 | 600.17 | |
| 196.69 | 549.23 | 183.08 | 529.02 | 1,744.26 | 581.42 | |
| 204.49 | 572.63 | 190.88 | 506.38 | 1,659.88 | 553.29 | |
| 222.52 | 596.99 | 199.00 | 603.69 | 1,579.50 | 526.50 | |
| 215.23 | 623.70 | 207.90 | 540.96 | 1,639.09 | 546.36 | |
| 216.23 | 642.24 | 214.08 | 515.04 | 1,651.03 | 550.34 | |
| 213.51 | 653.98 | 217.99 | 592.64 | 1,659.69 | 553.23 | |
| 192.29 | 644.97 | 214.99 | 599.39 | 1,648.64 | 549.55 | |
| 173.10 | 622.03 | 207.34 | 645.90 | 1,707.07 | 569.02 | |
| 578.90 | 192.97 | 1,837.93 | 612.64 |
Now alpha = 2/3 (or 0.667). Now we can find exponential three-month moving average. It is = (alpha * actual observation in the t-1th period) + [(1-alpha)*simple moving average in the t-1th period]
For example for Amazon for the 3rd period exponential three-month moving average = 2/3*180.13 + [(1-2/3)*(174.45)] = 178.24
| Amazon | 3 month moving total | 3 month moving average | Exponential moving avg. | 3 month moving total | 3 month moving average | Exponential moving avg. | ||
| 169.94 | 600.36 | |||||||
| 173.29 | 613.40 | |||||||
| 180.13 | 586.76 | |||||||
| 195.81 | 523.36 | 174.45 | 178.24 | 544.10 | 1,800.52 | 600.17 | 591.23 | |
| 196.69 | 549.23 | 183.08 | 191.57 | 529.02 | 1,744.26 | 581.42 | 556.54 | |
| 204.49 | 572.63 | 190.88 | 194.75 | 506.38 | 1,659.88 | 553.29 | 537.11 | |
| 222.52 | 596.99 | 199.00 | 202.66 | 603.69 | 1,579.50 | 526.50 | 513.09 | |
| 215.23 | 623.70 | 207.90 | 217.65 | 540.96 | 1,639.09 | 546.36 | 584.58 | |
| 216.23 | 642.24 | 214.08 | 214.85 | 515.04 | 1,651.03 | 550.34 | 544.09 | |
| 213.51 | 653.98 | 217.99 | 216.82 | 592.64 | 1,659.69 | 553.23 | 527.77 | |
| 192.29 | 644.97 | 214.99 | 214.00 | 599.39 | 1,648.64 | 549.55 | 578.28 | |
| 173.10 | 622.03 | 207.34 | 197.31 | 645.90 | 1,707.07 | 569.02 | 589.27 | |
| 578.90 | 192.97 | 179.72 | 1,837.93 | 612.64 | 634.81 |
jeff jeffy answered 11 months agoRelated Solutions
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IBM
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January
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180.89
633.92
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559.97
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221.08
551.70
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489.50
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483.58
July
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609.39
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below shows the closing monthly stock prices for IBM and Amazon.
Calculate the exponential three-month moving average for both
stocks where two-thirds of the average weight is placed on the most
recent price. (Do not round intermediate calculations. Round your
answers to 2 decimal places.) IBM AMZN January $ 175.64 $ 614.86
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191.89 508.22 June 209.09 494.38 July 235.82 606.69 August...
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Apr-17
4.1
May-17
4.1
Jun-17
4.5
Jul-17
4.6
Aug-17
4.5
Sep-17
4.1
Oct-17
3.9
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3.9
Dec-17
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4.5
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4.4
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3.6
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Sales
Advertising
1
1
144
41
2
151
51
3
134
32
4
151
45
2
1
145
48
2
145
34
3
141
29
4
166
43
3
1...
Please run Moving Average with 2 and 3 periods; Exponential Smoothing with a smoothing factor, or...
Please run Moving
Average with 2 and 3 periods; Exponential Smoothing with a
smoothing factor, or alpha, of 0.1 , 0.5 and 0.9; and Classical
Decomposition for the data listed below.
Which model is best?
Please explain how you were able to run each model using Microsoft
Excel.
Year
Quarter
Sales
Advertising
1
1
144
41
2
151
51
3
134
32
4
151
45
2
1
145
48
2
145
34
3
141
29
4
166
43
3
1...
The table below shows the closing monthly stock prices for IBM and Amazon. Calculate the exponential...
The table below shows the closing monthly stock prices for IBM
and Amazon. Calculate the exponential three-month moving average
for both stocks where two-thirds of the average weight is placed on
the most recent price. (Do not round intermediate
calculations. Round your answers to 2 decimal places.)
IBM
AMZN
January
$
177.44
$
619.21
February
178.49
627.44
March
196.51
568.43
April
213.10
549.30
May
190.45
501.98
June
210.47
490.78
July
239.81
607.59
August
199.24
535.11
September
222.47
511.66
October
215.07...
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