Asked by Jessi Chytka on Jun 21, 2024
Verified
Rebecca correctly calculated the 3-day SMA of these stock prices $11,$14,$13,$11,and $12 as $12.67,$12.67,and $12.00.
3-day SMA
A short-term moving average that calculates the average of a security's prices over the last three days.
Stock Prices
The cost of purchasing a share of equity in a company, which fluctuates based on market conditions.
- Calculate simple moving averages and understand their implications on stock prices.
Verified Answer
AI
Ayana Isabel HualdeJun 26, 2024
Final Answer :
True
Explanation :
The 3-day SMA is the average of the last three closing prices.
- The first 3-day SMA is (11+14+13)/3 = 12.67.
- The second 3-day SMA is (14+13+11)/3 = 12.67.
- The third 3-day SMA is (13+11+12)/3 = 12.00.
Therefore, Rebecca's calculations are correct.
- The first 3-day SMA is (11+14+13)/3 = 12.67.
- The second 3-day SMA is (14+13+11)/3 = 12.67.
- The third 3-day SMA is (13+11+12)/3 = 12.00.
Therefore, Rebecca's calculations are correct.
Learning Objectives
- Calculate simple moving averages and understand their implications on stock prices.