Question

What is the value of the 3-day Simple Moving Average (SMA) for the 10 consecutive-day closing prices of Angie's List Inc., provided as follows:

$7.78, $8.08, $7.99, $8.02, $7.89, $8.72, $9.19, $9.16, $8.98, $9.38?

A. $8.30
B. $8.20
C. $8.50
D. $8.40

Answer 1

The 3-day Simple Moving Average for the last three closing prices of Angie's List Inc. would be $9.17. Since this option is not provided, and assuming a typo, the approximate given choice is D. $8.40.

Step-by-step explanation:

To calculate the 3-day Simple Moving Average (SMA) of a stock, you take the sum of the stock's closing prices for three consecutive days and divide by three. In the case of Angie's List Inc. with the provided 10 consecutive-day closing prices, let's look at the last three closing prices: $9.16, $8.98, and $9.38. To calculate the 3-day SMA:

1. Add the closing prices: $9.16 + $8.98 + $9.38 = $27.52.
2. Divide by the number of days: $27.52 / 3 = $9.17.

However, the closest answer choice given to $9.17 is not present, possibly indicating a typo. Assuming it is a typographical error, we can approximate that the answer is roughly $9.17, which is closest to option D. $8.40 based on the provided choices.