Which of the Following Forecasting Methods Puts the Least Weight

question 48

Multiple Choice

Which of the following forecasting methods puts the least weight on the most recent time series value?

• A) exponential smoothing with α = .3
• B) exponential smoothing with α = .2
• C) moving average using the most recent 4 periods
• D) moving average using the most recent 3 periods

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Definitions:

Expected Return

The anticipated profit or loss of an investment, usually based on historical data or statistical analysis.

Portfolio

An aggregation of financial assets ranging from stocks and bonds to commodities, alongside cash and equivalents like mutual funds and ETFs.

Stock A

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

Stock C

A generic term that could refer to a third class of stock; however, without specific context, its meaning can vary.