A 5-Day Exponential Moving Average

question 91

Multiple Choice

A 5-day exponential moving average:

• A) is a compound function.
• B) places more emphasis on the latest closing price than it does on prior 4 day's closing prices.
• C) considers only the prior day's closing price.
• D) places a weight of 20 percent on the closing price of each day.
• E) is an indicator of the long-term trend of the market.

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Definitions:

Subjective Criteria

Evaluation or judgment criteria based on personal opinions, interpretations, feelings, or judgments, rather than on objective data or evidence.

Pencil-and-Paper Tests

Traditional forms of assessments or examinations where responses are written or selected on paper, often used for educational or psychological testing.

Polygraphs

Lie detector tests that measure physiological responses to questions in order to infer truthfulness.

Reliability and Validity

Terms used in research and testing to describe, respectively, the consistency of results over time and the accuracy of measuring what it is supposed to measure.