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
- Using the chart below for the company share price for the last 13 months Calculate the returns and expected returns %
- Forecast the share expected returns for the coming 3 months using:
- Moving average with w = 3
- Simple exponential smoothing with w = 0.7
- Determine which forecasting method has higher confidence
- What you can do to improve your forecasting
| Month | BMO.TO Adj Close |
| 2022-03-01 | 141.05 |
| 2022-04-01 | 130.60 |
| 2022-05-01 | 133.19 |
| 2022-06-01 | 119.82 |
| 2022-07-01 | 123.58 |
| 2022-08-01 | 118.66 |
| 2022-09-01 | 118.49 |
| 2022-10-01 | 122.81 |
| 2022-11-01 | 129.99 |
| 2022-12-01 | 121.36 |
| 2023-01-01 | 132.48 |
| 2023-02-01 | 129.32 |
| 2023-03-01 | 120.38 |
Step by Step Solution
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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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