NISM Certifications · NISM-Series-XV: Research Analyst · Technical Analysis
A stock closes at Rs 250, 252, 248, 254 and 256 on five consecutive days. What is the 5-day simple moving average of closing prices at the end of day five?
The 5-day simple moving average is Rs 252. Adding the five closing prices gives 1,260, and dividing by five yields 252. A simple moving average gives equal weight to every observation in the window.
- A252Correct
- B251
- C253
- D250
Explanation
Sum = 250 + 252 + 248 + 254 + 256 = 1,260. Dividing by 5 gives 252. Option 253 would result from ignoring the 248 close, and 251 or 250 do not reconcile with the sum of 1,260.
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