CFA Practice Question

There are 208 practice questions for this study session.

CFA Practice Question

The reason why a simple moving average always lags large movements in the actual data is:
A. it gives equal weight to all the periods in the moving average.
B. it is invalid as the time-series is not covariance stationary.
C. it takes the average value.
Explanation: That's why a simple moving average may not be the best predictor of the future.

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