Calculate the exponential three-month moving average for both stocks where two-thirds of the average weight is placed on the most recent price.
Calculate the exponential three-month moving average for both stocks where two-thirds of the average weight is placed on the most recent price.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:The table below shows the closing monthly stock prices for Penn Company and Teller, Incorporated. It illustrates an exercise to calculate the exponential three-month moving average for both stocks, with two-thirds of the weight placed on the most recent price.
**Table of Monthly Stock Prices:**
| Month | Penn ($) | Teller ($) |
|------------|----------|------------|
| January | 180.44 | 626.46 |
| February | 180.49 | 632.84 |
| March | 202.81 | 561.38 |
| April | 219.75 | 551.30 |
| May | 188.05 | 491.58 |
| June | 212.77 | 484.78 |
| July | 246.46 | 609.09 |
| August | 193.09 | 532.86 |
| September | 224.87 | 510.36 |
| October | 215.67 | 610.82 |
| November | 200.39 | 583.73 |
| December | 178.14 | 665.70 |
**Instructions:**
- Input all amounts as positive values.
- Do not round intermediate calculations.
- Round your answers to 2 decimal places.
**Results:**
The calculation results show the exponential moving averages for March through December.
| Month | Penn ($) | Teller ($) |
|------------|----------|------------|
| March | 195.36 ✓ | 584.14 ✓ |
| April | 274.27 ✗ | 566.57 ✓ |
| May | 195.79 ✗ | 513.17 ✗ |
| June | 209.81 ✗ | 497.00 ✗ |
| July | 231.11 ✗ | 568.79 ✗ |
| August | 205.27 ✗ | 537.55 ✗ |
| September | 223.17 ✗ | 530.57 ✗ |
| October | 213.44 ✗ | 581.08 ✗ |
| November | 207.20 ✗ | 576.02 ✗ |
| December
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