Question: Using the chart below for the company share price for the last 13 months Calculate the returns and expected returns % Forecast the share expected

  1. Using the chart below for the company share price for the last 13 months Calculate the returns and expected returns %
  2. Forecast the share expected returns for the coming 3 months using:
    1. Moving average with w = 3
    2. Simple exponential smoothing with w = 0.7

    3. Determine which forecasting method has higher confidence
    4. What you can do to improve your forecasting
MonthBMO.TO Adj  Close 
2022-03-01141.05
2022-04-01130.60
2022-05-01133.19
2022-06-01119.82
2022-07-01123.58
2022-08-01118.66
2022-09-01118.49
2022-10-01122.81
2022-11-01129.99
2022-12-01121.36
2023-01-01132.48
2023-02-01129.32
2023-03-01120.38

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ANSWER a To calculate the monthly returns we can use the following formula Returns Current Month Price Previous Month Price Previous Month Price Using ... View full answer

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