Suppose you are given the following information on the S&P 500: Date Close 10/1/2015 .....................1,923.82 10/2/2015 .....................1,951.36
Question:
Suppose you are given the following information on the S&P 500:
Date Close
10/1/2015 .....................1,923.82
10/2/2015 .....................1,951.36
10/5/2015 .....................1,987.05
10/6/2015 .....................1,979.92
10/7/2015 .....................1,995.83
10/8/2015 .....................2,013.43
10/9/2015 .....................2,014.89
10/12/2015 ...................2,017.46
10/13/2015 ...................2,003.69
10/14/2015 ...................1,994.24
Calculate the simple three-day moving average for the S&P 500 and the exponential three-day moving average where two-thirds of the weight is placed on the most recent close. Why would you want to know the moving average for an index? If the close on October 14, 2015, was below the three-day moving average, would it be a buy or sell signal?
Step by Step Answer:
Fundamentals of Investments, Valuation and Management
ISBN: 978-1259720697
8th edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin