NISM Certifications · NISM-Series-XV: Research Analyst · Technical Analysis
A stock's closing prices (in rupees) over the last 5 days are 200, 204, 206, 202 and 208. What is the 5-day simple moving average?
The 5-day simple moving average is Rs 204. Add the five closing prices to get 1020 and divide by five. A deviation check confirms it, as differences from 204 net to zero.
- A204Correct
- B203
- C206
- D205
Explanation
Sum = 200+204+206+202+208 = 1020. Dividing by 5 gives 204. Check: deviations from 204 are -4, 0, +2, -2, +4, which sum to 0. 205 would result from a wrong sum, and 206 is just the median-like middle value, not the mean.
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