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From the data below for Apple (AAPL) stock, calculate the upper and lower Bollinger bands, which represent plus (or minus) two standard deviations of the 20-day simple moving average added (subtracted) from the 20-day simple moving average. If the daily price approaches or exceeds the upper Bollinger band, traders will look for a continued upward movement in the stock price. (Do not round intermediate calculations. Round your answers to 2 decimal places.)       Date AAPL Close 20-Day Simple Moving Average Standard Deviation of 20-Day Moving Average Lower Bollinger Band Upper Bollinger Band 3/26/2019 186.96 181.05 3.57     3/27/2019 188.64 181.67 3.77     3/28/2019 188.89 182.35 3.97     3/29/2019 190.12 183.13 4.17     4/1/2019 191.41 183.88 4.37     4/2/2019 194.19 184.65 4.56     4/3/2019 195.52 185.57 4.74     4/4/2019 195.86 186.62 4.89     4/5/2019 197.17 187.78 5.03     4/8/2019 200.27 188.98 5.16     4/9/2019 199.67 190.04 5.27     4/10/2019 200.79 190.97 5.36     4/11/2019 199.12 191.91 5.42     4/12/2019 199.04 192.68 5.44

From the data below for Apple (AAPL) stock, calculate the upper and lower Bollinger bands, which represent plus (or minus) two standard deviations of the 20-day simple moving average added (subtracted) from the 20-day simple moving average. If the daily price approaches or exceeds the upper Bollinger band, traders will look for a continued upward movement in the stock price. (Do not round intermediate calculations. Round your answers to 2 decimal places.)       Date AAPL Close 20-Day Simple Moving Average Standard Deviation of 20-Day Moving Average Lower Bollinger Band Upper Bollinger Band 3/26/2019 186.96 181.05 3.57     3/27/2019 188.64 181.67 3.77     3/28/2019 188.89 182.35 3.97     3/29/2019 190.12 183.13 4.17     4/1/2019 191.41 183.88 4.37     4/2/2019 194.19 184.65 4.56     4/3/2019 195.52 185.57 4.74     4/4/2019 195.86 186.62 4.89     4/5/2019 197.17 187.78 5.03     4/8/2019 200.27 188.98 5.16     4/9/2019 199.67 190.04 5.27     4/10/2019 200.79 190.97 5.36     4/11/2019 199.12 191.91 5.42     4/12/2019 199.04 192.68 5.44

Essentials Of Investments
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
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From the data below for Apple (AAPL) stock, calculate the upper and lower Bollinger bands, which represent plus (or minus) two standard deviations of the 20-day simple moving average added (subtracted) from the 20-day simple moving average. If the daily price approaches or exceeds the upper Bollinger band, traders will look for a continued upward movement in the stock price. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

 

 
 
Date AAPL Close 20-Day Simple Moving Average Standard Deviation of 20-Day Moving Average Lower Bollinger Band Upper Bollinger Band
3/26/2019 186.96 181.05 3.57    
3/27/2019 188.64 181.67 3.77    
3/28/2019 188.89 182.35 3.97    
3/29/2019 190.12 183.13 4.17    
4/1/2019 191.41 183.88 4.37    
4/2/2019 194.19 184.65 4.56    
4/3/2019 195.52 185.57 4.74    
4/4/2019 195.86 186.62 4.89    
4/5/2019 197.17 187.78 5.03    
4/8/2019 200.27 188.98 5.16    
4/9/2019 199.67 190.04 5.27    
4/10/2019 200.79 190.97 5.36    
4/11/2019 199.12 191.91 5.42    
4/12/2019 199.04 192.68 5.44    
Expert Solution
Step 1

Answer - 

The formula for Calculation of Lower Bollinger Band and Upper Bollinger Band:

 

Upper BB = 20-day SMA + (2 * standard deviation of 20-day SMA)

Lower BB = 20-day SMA - (2 * standard deviation of 20-day SMA)

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