Question

# The table below shows the closing monthly stock prices for IBM and Amazon. Calculate the exponential...

The table below shows the closing monthly stock prices for IBM and Amazon. Calculate the exponential three-month moving average for both stocks where two-thirds of the average weight is placed on the most recent price. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

 IBM AMZN January \$ 170.84 \$ 603.26 February 174.09 615.56 March 182.65 583.94 April 198.47 544.90 May 195.73 524.86 June 205.41 503.98 July 225.18 604.29 August 212.77 540.06 September 217.19 514.52 October 213.75 594.66 November 193.19 597.65 December 173.66 648.10
 IBM AMZN March April May June July August September October November December

Let EMA for period t be EMAt and actual price be Pt

Hence, EMAt = Pt * k + EMAt-1 * (1−k)

where, k = 2/3

For the first period, EMAt = Pt

Calculating using the above formula -

 IBM EMA January 170.84 170.84 February 174.09 173.0067 March 182.65 179.4356 April 198.47 192.1252 May 195.73 194.5284 June 205.41 201.7828 July 225.18 217.3809 August 212.77 214.307 September 217.19 216.229 October 213.75 214.5763 November 193.19 200.3188 December 173.66 182.5463
 AMZN EMA January 603.26 603.26 February 615.56 611.46 March 583.94 593.1133 April 544.9 560.9711 May 524.86 536.897 June 503.98 514.9523 July 604.29 574.5108 August 540.06 551.5436 September 514.52 526.8612 October 594.66 572.0604 November 597.65 589.1201 December 648.1 628.44

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