Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) Mary Hernandez has invested in the stock mutual fund and she is allowing for liquidating and investing in bond fund. She would like to predict the price of stock fund for next month before making a decision. She has gathered the following data on average price of fund in 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) By using a three-month moving average, predict fund price for month 21.

b) By using a three3-month weighted average with most current month weighted 0.60, next most current month weighted 0.30, and 3rd month weighted 0.10, predict fund price for month 21.

c) find out the exponentially smoothed predict using a=0.40 and predict the fund price for month 21.

d) Contrast the forecasts in (a), (b), and (c) by using MAD and indicated the most correct.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M915349

Have any Question? 


Related Questions in Basic Finance

What type of constraints may a client impose on a portfolio

What type of constraints may a client impose on a portfolio manager? If an investment in stock has a value of $3,000 at the beginning of the year and $3,500 at the end of the year, and paid a dividend of $250 at the end ...

What is the difference between shareholder and stakeholder

What is the difference between shareholder and stakeholder value? What is social responsibility? How does it, if at all, contribute to shareholder and stakeholder value? Does it add value to the firm? If so, how and unde ...

Tonia motorbikes chinese piracytonia motorbikes is the

TONIA MOTORBIKES CHINESE PIRACY Tonia Motorbikes is the third largest manufacturer of motorized scooters in Japan. The company sells its product, a 125cc vehicle, in Japan,Taiwan, Korea,Vietnam, and other Asian markets. ...

The whilst co is analyzing a project that has projected

The Whilst Co. is analyzing a project that has projected sales of $189,400 and costs of $102,300. The project requires an investment in inventory of $15,000 plus another $28,000 in accounts receivable. Fixed assets of $8 ...

Module- slpcash flow estimation and capital

Module- SLP CASH FLOW ESTIMATION AND CAPITAL BUDGETING Applying Various Capital Budgeting Methodologies The objective of a firm is to maximize shareholder wealth. The Net Present Value (NPV) method is one of the useful m ...

Suppose that you are following the stock of a firm that has

Suppose that you are following the stock of a firm that has been experiencing severe problems. Failure is imminent unless the firm is granted government guaranteed loans. If the firm fails, its stock will, of course, fal ...

Smart analysts can massage the numbers in npv analysis to

Smart analysts can massage the numbers in NPV analysis to make any project's NPV look positive. It is better to use a simpler approach like payback or accounting rate of return that gives analysts fewer degrees of freedo ...

The text discusses the trade-off between internal and

The text discusses the trade-off between internal and external validity, known as the experimenters dilemma. Speculate on things a researcher can do to increase internal and external validity simultaneously, thereby desi ...

A project has the following incremental cash flows for

A project has the following incremental cash flows for years zero, through year 4, respectively: -$3,000, $1,900, $900, and $800. Is 9% the IRR of this project? If not, is where is the IRR compared to 9%?

Directions update the data with your recommendations for

Directions: Update the data with your recommendations for the blue cells, then use Solver to determine the minimum variance portfolio Choose the index for each asset class, type the name below and paste in the relevant r ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen