Suppose the stock XYZ has been generally increasing in price over the past few months. In a

Question:

Suppose the stock XYZ has been generally increasing in price over the past few months. In a time series graph of the stock price, its 20 -day moving average, and its 50-day moving average, as in Figure 1.9, which curve will be highest, the price, the 20-day moving average, or the 50-day moving average? Which curve will be the next highest? Explain why.

Figure 1.9:

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