The Value of the Smoothing Constant Alpha in an Exponential

question 86

True/False

The value of the smoothing constant alpha in an exponential smoothing model is between 0 and 1.

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Definitions:

Stock Repurchase

A corporate action in which a company buys back its own shares from the marketplace, reducing the amount of outstanding stock.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuing entity, which may not reflect market value.

Market Value

The existing rate at which an asset or service is offered for buying or selling in an unrestricted market.