Which One of the Following Statements Is Correct Regarding Moving

question 38

Multiple Choice

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

• A)The 50-day moving average reflects the long-term trend of the market.
• B)An exponential moving average is a weighted average.
• C)Moving averages are used primarily to measure trading volume.
• D)Short-term and long-term moving averages always move in the same direction.
• E)Moving averages are generally computed using average daily prices.

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Definitions:

Semantic Memory

A type of long-term memory involving the ability to remember meanings, concepts, facts, and general knowledge about the world.

Craik And Lockhart

Refers to a theory of memory proposed by Fergus I. M. Craik and Robert S. Lockhart that suggests memory retention is determined by the depth of mental processing, with deeper levels of analysis leading to more enduring memory.

Rectangular

Having the shape or characteristics of a rectangle, which is a four-sided figure with opposing sides equal and right angles.

Long-Term Memory

The phase of the memory system capable of storing information for prolonged periods, often throughout a person's life.