Assignment - Moving Average
Obtain 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 for m: 10, 100, and 200. Graph the data with Microsoft Excel.
- Create centered-moving averages with the following values for m: 10, 100, and 200. Graph the data with Microsoft 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.
Submit your answers in a two- to three-page Microsoft Word document and a Microsoft Excel sheet.