Calculate the exponential three-month moving average for both stocks where two-t

Question

Calculate the exponential three-month moving average for both stocks where two-thirds of the average weight is placed on the most recent price. (Round your answers to 2 decimal places. Input all amounts as positive values. Omit the "$" sign in your response.)

  

  

Calculate the exponential three-month moving average for both stocks where two-thirds of the average weight is placed on the most recent price. (Round your answers to 2 decimal places. Input all amounts as positive values. Omit the "$" sign in your response.)

Explanation / Answer

Where:

X = Current EMA (i.e. EMA to be calculated)

C = Current original data value

K = Smoothing Constant

P = Previous EMA

K = Smoothing Constant = 2 / (1 + n)

n = number of periods for EMA i.e. the Window to calculate.

therefore k= 2/(1+3)=0.5

Stock 1   January 90.1 original   February 98.3 .5(98.3-90.1)+90.1 94.2   March 101.27 .5(101.27-98.3)+98.3 99.785   April 111.6 .5(111.6-101.27)+101.27 106.435   May 116.79 .5(116.79-111.6)+111.6 114.195   June 112.7 .5(112.7-116.79)+116.79 114.745   July 123.62 .5(123.62-112.7)+112.7 118.16   August 124.69 .5(124.69-123.62)+123.62 124.155   September 115.69 .5(115.69-124.69)+124.69 120.19   October 131.6 .5(131.6-115.69)+115.69 123.645   November 154.05 .5(154.05-131.6)+131.6 142.825   December 164.65 .5(164.65-154.05)+154.05 159.35 Stock 2   January 319.65 Original   February 354.13 .5(354.13-319.65)+319.65 336.89   March 361.99 .5(361.99-354.13)+354.13 358.06   April 384.06 .5(384.06-361.99)+361.99 373.025   May 515.97 .5(515.97-384.06)+384.06 450.015   June 444.06 .5(444.06-515.97)+515.97 480.015   July 531.95 .5(531.95-444.06)+444.06 488.005   August 512.29 .5(512.29-531.95)+531.95 522.12   September 497.67 .5(497.67-512.29)+512.29 504.98   October 543.61 .5(543.61-497.67)+497.67 520.64   November 586.4 .5(586.40-543.61)+543.61 565.005   December 619 .5(619-586.4)+586.4 602.7

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