Question

What is the ten-day simple moving average if the latest daily closing prices are $5, $7, $8, $5, $4, $6, $7, $8, $9, $10?A) $6.00B) $6.90C) $7.67D) $10.00

Answer 1

SMA = 6.9

Step-by-step explanation:

given,

ten - day closing price

$5, $7, $8, $5, $4, $6, $7, $8, $9, $10

Simple moving average is an average which is a good estimator of future.

`SMA = (A_1+A_2.......A_(10))/(n)`

`SMA = (\$ 5+\$ 7+\$ 8+\$ 5+\$ 4+\$ 6+\$ 7+\$ 8+\$ 9+\$ 10)/(10)`

`SMA = (69)/(10)`

SMA = 6.9