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

Explain why a call option with zero exercise price is

Explain why a call option with zero exercise price is equivalent to the underlying stock, assuming no dividends on the stock during the life of the option? Why might two calls or puts alike in all respects but time to ex ...

An absorber packed to the height of 45 m with 10-in raschig

An absorber packed to the height of 4.5 m with 1.0-in. Raschig rings has been designed to reduce the concentration level of a mercaptan pollutant in an exhaust stream from 5.0 to 0.3 mol %. A nonvolatile, mercaptan-free ...

Which financial variable must be multiplied by the return

Which financial variable must be multiplied by the return on assets ratio in order to calculate the return on stockholders' equity ratio? Which financial ratio assesses management performance by measuring the profitabili ...

One advantage of displaying correlational data in a scatter

One advantage of displaying correlational data in a scatter plot is that you can literally see the relationship in the graph. a. In a scatter plot, what pattern of points would indicate a positive relationship between va ...

Something that you could have focused on in discussion

Something that you could have focused on in Discussion Question #3 on NASA is its relatively new environmental research mission and its Earth Science division. President-elect Trump now wants to excise it from the budget ...

Use the value of the linear correlation coefficient to

Use the value of the linear correlation coefficient to calculate the coefficient of determination. What does this tell you about the explained variation of the data about the regression line? About the unexplained variat ...

1 without a national mortgage exchange how are mortgages

1. Without a national mortgage exchange, how are mortgages traded in the United States? 2. Explain the relationship between the price and the yield on a mortgage loan. 3. Define the term point and explain how it is used, ...

1 what is the difference between the short position and the

1. What is the difference between the short position and the long position in a futures market? 2. Give an example of how someone might hedge using a commodity futures and give an example of how someone might hedge using ...

Sorenson inc has sales of 5119000 a gross profit margin of

Sorenson Inc. has sales of $5,119,000, a gross profit margin of 32.18 percent, and inventory of $1,017,000. What are the company's inventory turnover ratio and days' sales in inventory?

Compare and differentiate between the financial and

Compare and differentiate between the financial and investment DECISIONS MAKING?

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

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