In the Multiplicative Decomposition Method,the Centered Moving Averages Provide an Estimate

question 61

Multiple Choice

In the multiplicative decomposition method,the centered moving averages provide an estimate of:

• A)Trend x seasonal
• B)Trend x cycle
• C)Seasonal x cycle
• D)Trend x irregular
• E)Seasonal x irregular

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Definitions:

Effective Yield

A measure of the return on an investment taking into account the effect of compounding interest, more accurate than simple yield calculations.

Present Value Factors

Multipliers used in calculating the present value of a future amount of money or stream of cash flows given a specified rate of return or discount rate.

Floating-rate Debt

Debt instruments, such as bonds or loans, that have variable interest rates that adjust over the tenure of the obligation.

Market Interest Rate

The prevailing rate at which interest is offered on deposits or loans in the financial markets for a particular term and risk profile.