Question

Problem 8-4 Exponential Moving Averages (LO4, CFA1) The table below shows the closing monthly stock prices for IBM and Amazon. Calculate the exponential three-month moving average for both stocks where two-thirds of the average weight is placed on the most recent price. (Do not round intermediate calculations. Round your answers to 2 decimal places.) January Februasy Mareh April June July August September October November December IM $174.44 176.49 190.21 206.45 192.85 208.17 233.16 205.39 220.07 214.47 195.89 175.34 AKZN $611.96 622.04 575.48 547.30 512.38 496.78 06.09 537.36 512.95 600.72 592.43 554.70 IBM AMZN March April May June July August September October November December

Answer 1

E A B C D 1 Date IBM AMZN IBM AMZN 2 January $174.44 $611.96 3 February $176.49 $622.04 4 March $190.21 $575.48 $ 185.30 $ 589.32 April $206.45 $547.30 $ 198.75 $ 564.45 6 May $192.85 $512.38 $ 194.68 $ 528.72 7 June $208.17 | $496.78 $ 205.33 $ 507.80 8 July $233.16 $606.09 $ 222.28 $ 572.25 9 August $205.39 $537.36 $ 210.48 $ 542.05 10 September $220.07 $512.96 $ 219.81 $ 532.55 11 October | $214.47 $600.72 $213.89 $ 575.53 12 November $195.89 $592.43 $ 203.02 $ 580.57 13 December | $175.34 $654.70 $ 185.29 $ 635.33

AMZN m + i ... A B C 1 Date IBM AMZN IBM 2 January 174.44 611.96 3 February 176.49 622.04 March 190.21 575.48 =+B2/6+B3/6+B4*2/3 April 206.45 547.3 =+B3/6+B4/6+B5*2/3 6 May 192.85 512.38 =+B4/6+B5/6+B6*2/3 7 June 208.17 496.78 =+B5/6+B6/6+B7*2/3 8 July 233.16 606.09 =+B6/6+B7/6+B8*2/3 9 August 205.39537.36 =+B7/6+B8/6+B9*2/3 10 September 220.07512.96 =+B8/6+B9/6+B10*2/3 | 11 October 214.47 600.72 =+B9/6+B10/6+B11*2/3 12 November 195.89 592.43 =+B10/6+B11/6+B12*2/3 13 December 175.34 654.7 =+B11/6+B12/6+B13*2/3 =+C2/6+C3/6+C4*2/3 +C3/6+C4/6+C5*2/3 =+C4/6+C5/6+C6*2/3 =+C5/6+C6/6+C7*2/3 =+C6/6+C7/6+C8*2/3 =+C7/6+C8/6+C9*2/3 =+C8/6+C9/6+C10*2/3 =+C9/6+C10/6+C11*2/3 =+C10/6+C11/6+C12*2/3 =+C11/6+C12/6+C13*2/3

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