The Simple Moving Average Forecast Is Actually a Variation of the Weighted

question 91

True/False

The simple moving average forecast is actually a variation of the weighted moving average but with all of the weights being equal.

---

Definitions:

Market Portfolio

A theoretical bundle of investments that includes all types of assets available in the market, with each asset weighted by its market capitalization.

Dividend Decline

A situation in which a company reduces the amount of dividends declared and distributed to its shareholders compared to previous periods.

Capitalized Earnings Model

A method to value a company by dividing its earnings by the capitalization rate, assuming constant future earnings.

P/E Ratio

Price-to-Earnings Ratio, a valuation metric that compares a company's stock price to its per-share earnings, used to evaluate if a stock is over or undervalued.