CMA Final · Strategic Financial Management · Fundamental Analysis and Technical Analysis
A stock closed at the following prices over five consecutive days: Rs 100, Rs 104, Rs 102, Rs 108, Rs 106. What is the 5-day simple moving average of the closing price?
The five-day simple moving average is the sum of the five closing prices divided by five. The prices total Rs 520, so the average is Rs 104. Using only the last price or the highest price would not give a moving average.
- ARs 104
- BRs 105Correct
- CRs 106
- DRs 108
Explanation
Sum = 100+104+102+108+106 = 520. Dividing by 5 gives Rs 104. Check: 520/5 = 104. Option Rs 105 is wrong... recompute: 520/5 = 104, so the correct option is Rs 104.
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