Using the 3-month moving average predict fund price for

Assignment Help Finance Basics

Reference no: EM13477020

Mary Hernandez has invested in a stock mutual fund and she is considering liquidating and investing in a bond fund. She would like to forecast the price of the stock fund for the next month before making a decision. She has collected the following data on the average price of the fund during the past 20 months.

Month	Fund Price	Month	Fund Price
1	63 1/4	11	68 1/8
2	60 1/8	12	63 1/4
3	61 3/4	13	64 3/8
4	64 1/4	14	68 5/8
5	59 3/8	15	70 1/8
6	57 7/8	16	72 3/4
7	62 1/4	17	74 1/8
8	65 1/8	18	71 3/4
9	68 1/4	19	75 1/2
10	65 1/2	20	76 3/4

a. Using a 3-month moving average, forecast the fund price for month 21.

b. Using a 3-month weighted average with the most recent month weighted 0.60, the next most recent month weighted 0.30, and the third month weighted 0.10, forecast the fund price for month 21.

c. Compute an exponentially smoothed forecast using a=0.40 and forecast the fund price for month 21.

d. Compare the forecasts in (a), (b), and (c) using MAD and indicated the most accurate.

Reference no: EM13477020

Questions Cloud

Revenues and other operating costs are expected to be : clemson software is considering a new project whose data are shown below. the required equipment has a 3-year tax life

Develop the linear program which shows exactly how many : you are the recently hired chief operations officer at abc inc a regional firm which produces specialized

The dividend growth rate is expected to be constant at 15 : huang companys last dividend was 1.25. the dividend growth rate is expected to be constant at 15 for 3 years after

Your territory comprises 15 retail stores your : training assessment is an important task for hr personnel. use the argosy university online library and textbooks to

Using the 3-month moving average predict fund price for : mary hernandez has invested in a stock mutual fund and she is considering liquidating and investing in a bond fund. she

In general i approve of non-profit organizations utilizing : in general i approve of non-profit organizations utilizing marketing techniques that are common in the traditional

Strategic planning process in a four- to five-page paper : in a four- to five-page paper excluding the title and references pages discuss the strategic planning process. in your

Value chain assessment 1 individual essay weighting total : assessment 1 individual essay weighting total 30 length maximum world count 2500 words due 11pm aest 8th of august 2014

Cmps 9400b heories play a vitally important role in guiding : heories play a vitally important role in guiding research and organizing and making sense of research findings. in

User Account

All Pages