Question

14 Review Later Calculate a three-day weighted moving average for the price of the stock for the end of Day 7 where the most recent price has a weight of 3, the next has a weight of 2, and the oldest price has a weight of 1. Day 1.62.00; Day 2.56.00: Day 3 - 50.00: Day 4 - 60.00; Day 5 - 59.00: Day 6.55.00: Day 7 - 59.00; Day 8 - 63.00 OOO

Answer 1

		Day	Price	Weight
		Day 1	62	0
		Day 2	56	0
		Day 3	50	0
		Day 4	60	0
		Day 5	59	0
		Day 6	55	1
		Day 7	59	2
		Day 8	63	3
Calculation of 3 day moving average AT THE END OF DAY 7
Given the most recent price has a weight of 3
The most recent price is Price as on day-8
But in question, it asked for weighted moving average at the end of Day 7
Wighted Moving average = { ( P1 X W1) + (P2 X W2) + (P3 X W3) + ….................. } / W1+W2+W3+….............
		`= (59 X 2) + (55 X 1) + (59 X 0) / 2+1+0
		`=57.67