In Using a Moving Average Forecasting Technique,as the Number of Averaging

question 34

Multiple Choice

In using a moving average forecasting technique,as the number of averaging period,k,increases:

• A)the forecast will respond more quickly to recent changes in the data
• B)the forecast will be more accurate especially if the data exhibits a trend
• C)the moving average will increase in value
• D)the moving average approximates the weighted moving average
• E)the moving average will smooth out variations

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Definitions:

Beta Risk

Beta risk measures the volatility of an investment in relation to the market as a whole, indicating how much an asset's price is expected to fluctuate relative to overall market movements.

Risk Adjustment

Risk adjustment is the process of modifying estimates or decisions to account for the risk involved, often used in financial, insurance, and healthcare sectors.

Capital Structure

Refers to the mix of debt and equity financing a company uses to fund its operations and growth.

WACC

The Weighted Average Cost of Capital, a calculation of a firm's cost of capital that weighs each category of capital proportionately.