A Six-Month Moving Average Forecast Is Generally Better Than a Three-Month

question 50

Multiple Choice

A six-month moving average forecast is generally better than a three-month moving average forecast if demand:

• A) is rather stable.
• B) has been changing due to recent promotional efforts.
• C) follows a downward trend.
• D) exceeds one million units per year.
• E) follows an upward trend.

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Definitions:

Naked Put

An options strategy where the investor sells put options without holding the underlying security, exposing them to potentially unlimited losses.

Expected Dollar Profit

The forecasted amount of money that an investment is likely to earn in dollars.

Major Drop

A significant decline in the price or value of an asset or stock within a short period of time.

Long Stock Investment

An investment strategy where an investor purchases stocks with the expectation that they will rise in value over time.