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.

---

Definitions:

Indirect Approach

A communication strategy that involves conveying a message in a roundabout way, rather than stating it directly, often used to soften the impact.

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.

Speculation

The act of forming theories or conjectures without firm evidence, often about financial markets or future events.

Cause

A factor or event that brings about an effect or a change in a situation.