NISM Certifications · NISM-Series-XV: Research Analyst · Technical Analysis
A stock closes at the following prices over five days: Rs 100, Rs 102, Rs 104, Rs 103, Rs 106. What is the 5-day simple moving average at the end of day 5?
The 5-day simple moving average is Rs 103, found by adding the five closing prices to get Rs 515 and dividing by five. The deviations from 103 sum to zero, confirming the result.
- ARs 103
- BRs 104Correct
- CRs 105
- DRs 102.5
Explanation
Sum = 100+102+104+103+106 = 515. Dividing by 5 gives Rs 103. Check: deviations from 103 are -3, -1, +1, 0, +3, which sum to 0, confirming 103. Rs 104 would be the middle value, not the mean.
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