Corporate AAA bond interest rates for 12 consecutive months are 9.5%, 9.3%, 9.4%, 9.6%, 9.8%, 9.7%, 9.8%, 10.5%, 9.9%, 9.7%, 9.6% and 9.6%. What is the three-month weighted moving average forecast (with weights 0.2, 0.4 and 0.4 - from oldest to most recent respectively) for the next month, rounded to two decimal places?

Respuesta :

Answer:

the three-month weighted moving average forecast is 9.62%

Step-by-step explanation:

The computation of the three-month weighted moving average forecast is shown below:

= Weight Ă— rate of interest + Weight Ă— rate of interest + Weight Ă— rate of interest

= (0.2 Ă— 9.7) + (0.4 Ă— 9.6) + (0.4 Ă— 9.6)

= 9.62%

Hence, the three-month weighted moving average forecast is 9.62%

We simply applied the above formula so that the correct value could come

And, the same is to be considered