Answer:
SMA = 6.9
Explanation:
given,
ten - day closing price
$5, $7, $8, $5, $4, $6, $7, $8, $9, $10
Simple moving average is an average which is a good estimator of future.
[tex]SMA = \dfrac{A_1+A_2.......A_{10}}{n}[/tex]
[tex]SMA = \dfrac{\$ 5+\$ 7+\$ 8+\$ 5+\$ 4+\$ 6+\$ 7+\$ 8+\$ 9+\$ 10}{10}[/tex]
[tex]SMA = \dfrac{69}{10}[/tex]
SMA = 6.9
