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

1 what are four primary reasons that behavioral researchers

1. What are four primary reasons that behavioral researchers use case studies? 2. What is a psychobiography? 3. Why are behavioral scientists reluctant to trust case studies as a means of testing hypotheses?

Grind co is considering replacing an existing machine the

Grind Co. is considering replacing an existing machine. The new machine is expected to reduce labor costs by $153,000 per year for 5 years. Depreciation on the new machine is $124,000 compared with $86,000 on the old mac ...

The following table lists three financial instruments and

The following table lists three financial instruments and their deltas, gammas, and vegas for each $1 million notional principal under the assumption of a long position. (Long in a swap or FRA means to pay fixed and rece ...

1 what is the primary logic behind potential separation of

1. What is the primary logic behind potential separation of marketing and logistics channel structure? 2. How does the risk related to inventory compare among manufacturers, wholesalers, and retailers? 3. Why wouldn't a ...

During 2015 rainbow umbrella corp had sales of 920000 cost

During 2015, Rainbow Umbrella Corp. had sales of $920,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $610,000, $125,000, and $155,000, respectively. In addition, the company ...

Explain how the repurchase agreement plays a role in the

Explain how the repurchase agreement plays a role in the pricing of futures contracts. What is the implied repo rate? Identify and explain some factors that make the execution of stock index futures arbitrage difficult i ...

Consider the context-free grammara give a leftmost

Consider the context-free grammar: a) Give a leftmost derivation for the string. b) Give a rightmost derivation for the string. c) Give a parse tree for the string. ! d) Is the grammar ambiguous or unambiguous? Justify y ...

Practice sentence variety-rewrite the following paragraph

Practice sentence variety:- Rewrite the following paragraph by varying sentence types and sentence lengths to keep the writing interesting. Smartfood was founded by Ann Withey, Andrew Martin, and Ken Meyers in 1984. The ...

Go to one of the web sites that contain video clips such as

Go to one of the Web sites that contain video clips (such as www.youtube.com) and view some video clips about banking tips. You can use search phrases such as "banking tips." Select one video clip on this topic that you ...

1 behavioral measures frequently have the advantage of

1. Behavioral measures frequently have the advantage of reducing participant reactivity. Since they can capture the behavior of individuals more honestly, why are they so infrequently used in behavioral research? 2. Cons ...

  • 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