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Moving Average Forecasting Models

Obtain the daily price data over the past five years for three different stocks. Data can be obtained from the Internet by using the following keywords: stock price data, return data, company data, and stock returns.
•Create trend-moving averages with the following values form: 10, 100, and 200. Graph the data with Excel.
•Create centered-moving averages with the following values form: 10, 100, and 200. Graph the data with Excel.
•How do the moving averages for the same values of m compare between a trend-moving average and a centered-moving average?
•Explain how these moving averages can assist a stock analyst in determining the stocks' price direction. Provide a detailed explanation with justifications.
(Word Document and Excel sheet).

Solution Preview

Please read the directions carefully vis-à-vis the attached Excel file.

To help you with the three different stocks, I did one for you and detailed how below. I used Microsoft Corporation.

Obtain daily price data over the past five years

1. Go to http://finance.yahoo.com
2. Input 'Microsoft' or MSFT in the 'Enter Symbol' Look Up area. Click Enter
3. Got to 'Historical Prices'
4. Change start date to August 12, 2008
5. Click 'Get Prices'
6. Scroll down until you see 'Download to Spreadsheet' option. Click this
7. Copy all data of the downloaded spreadsheet to the DATA worksheet of the Excel file
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Solution Summary

The solution discusses moving average forecasting models.

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