Indicators · Question 11 of 12
The closing prices of the last five days are 10, 11, 12, 13 and 14 euros. The next day the share closes at 16 euros. What are the values of the simple 5-day average before and after?
1 answer is correct. Hard
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Answer
- C 12.00 euros before, 13.20 euros after
Explanation
Before: (10 + 11 + 12 + 13 + 14) / 5 = 12. On the new day, the oldest value, 10, drops out and 16 is added: (11 + 12 + 13 + 14 + 16) / 5 = 13.20. Anyone who calculates 12.67 divides the six prices by six, which would be a different average.