A Firm Has Had the Following Order History Over the Last

question 63

Multiple Choice

A firm has had the following order history over the last 4 months: November 140
December 80
January 100
February 150
What is the weighted moving average forecast for March, assuming a weight of 60% for the most recent month, 30% for the month preceding the most recent month, and 10% for the month preceding that one?

• A)117.5
• B)228.1
• C)118.0
• D)128.0
• E)132.4

---

Definitions:

Unanticipated Inflation

Inflation that occurs when the actual rate exceeds what was expected, potentially eroding purchasing power and investment returns.

Security Market Line

A graphical representation of the Capital Asset Pricing Model, showing the relationship between the expected return of a security and its systemic risk as measured by beta.

APT

APT, or Arbitrage Pricing Theory, is a financial model that estimates the returns on an asset based on its risk in relation to multiple risk factors.

Well-Diversified Portfolio

A collection of investments that spread out risk by incorporating a wide variety of assets, thereby minimizing the impact of any single asset's performance on the overall portfolio.