Question: The S&P 500 end-of-month closing prices from May 2012 through April 2014 follow: a. Compute the six-month moving averages associated with this series of data.

The S&P 500 end-of-month closing prices from May 2012 through April 2014 follow:

0-4837541695 o. 5 2 16582928 577 065 P-30838504 & 666667887888 4 41

a. Compute the six-month moving averages associated with this series of data.

b. Plot the results of your computations in part (a). Describe any patterns, or trends, that are apparent.

c. According to your interpretations of the graph, in which direction do you think the market should move during the last half of 2014? (At the time you work this problem, you should be able to compare your prediction to what actually happened in the market.)

0-4837541695 o. 5 2 16582928 577 065 P-30838504 & 666667887888 4 41 131333 1 Aug Sep Oct Nor Dec Jan Feb Mar Apr JJA 0 362876891897 6111161 029602668497 1129169 4444555 & 3334 2 2 223311 3 1 1 Sep Oct Nov Dec lan Mar Apr

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a 6month Moving Month SP 500 average May12 131033 Jun12 136216 Jul12 137932 Aug12 140658 Sep12 ... View full answer

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