Which One of the Following Statements Is Correct Concerning Moving

question 63

Multiple Choice

Which one of the following statements is correct concerning moving averages?

• A) The longer the time period under consideration, the more sensitive the moving average is to daily price fluctuations.
• B) The shorter the time period under consideration, the easier it is to spot long- term price trends.
• C) A moving average helps remove short- term fluctuations from the analysis.
• D) A simple moving average is computed as the arithmetic mode.

---

Definitions:

Corporate Bond

A debt security issued by a corporation to raise funding, offering periodic interest payments and the return of the principal at maturity.

Default

The failure to meet the legal obligations of a loan, such as not making the agreed-upon payments.

Financial Intermediation

A process where financial institutions serve as intermediaries between savers and borrowers, facilitating the flow of funds in the economy.

Intermediaries

Entities that act as middlemen in transactions, facilitating trade between buyers and sellers without owning the product.