The following table reports the percentage of stocks in a portfolio for nine quarters from 2012 to
Question:
Quarter Stock%
1st-2012 ............... 29.8
2nd-2012 .............. 31.0
3rd-2012 ............... 29.9
4th-2012 ............... 30.1
1st-2013 ............... 32.2
2nd-2013 .............. 31.5
3rd-2013 .............. 32.0
4th-2013 .............. 31.9
1st-2014 ............... 30.0
a. Construct a time series plot. What type of pattern exists in the data?
b. Use trial and error to find a value of the exponential smoothing coefficient a that results in a relatively small MSE.
c. Using the exponential smoothing model you developed in part (b), what is the forecast of the percentage of stocks in a typical portfolio for the second quarter of 2014?
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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Related Book For 
An Introduction to Management Science Quantitative Approaches to Decision Making
ISBN: 978-1111823610
14th edition
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
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