Exhibit 18

question 77

Multiple Choice

Exhibit 18.2.The following table includes the information about a monthly time series. Refer to Exhibit 18.2.When the exponential smoothing method with α = 0.1 is applied,what is the mean absolute deviation (MAD) ?

• A)21.5
• B)3.00
• C)5.00
• D)9.00

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Definitions:

Abnormal Return

The difference between the actual return of a security and the expected return predicted by an equilibrium model.

Stock

A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.

Fundamental Analysts

Experts who evaluate investments by analyzing the fundamental financial conditions and performance of businesses and markets.

Relative Strength Analysis

A technique used in technical analysis that compares the price movement of a security to another security or overall market.