6.For a random process, the most appropriate forecast is the naive forecast True or False

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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7

6.For a random process, the most
appropriate forecast is the naive forecast
True or False
7. Suppose that the average monthly return
(computed from the natural log
approximation) for a stock is 0.0065.
Assume that natural logged price series
follows a random walk with drift. If the last
observed monthly price is $1,387.49, predict
next month's price in $. Enter answer to the
nearest hundredths place.
Transcribed Image Text:6.For a random process, the most appropriate forecast is the naive forecast True or False 7. Suppose that the average monthly return (computed from the natural log approximation) for a stock is 0.0065. Assume that natural logged price series follows a random walk with drift. If the last observed monthly price is $1,387.49, predict next month's price in $. Enter answer to the nearest hundredths place.
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