7
QuizMultiple Choice

Stock Performance — Quiz

Question 7 • Advanced Financial Algebra

Which phrase best describes a n -day simple moving average, where n is a positive integer?

Answer
A
the average price of a stock at the closing of n trading sessions
B
the greatest price of a stock after n trading sessions
C
the average price of a stock at the opening of n trading sessions
D
the lowest price of a stock after n trading session

Explanation

A simple moving average over n days is the arithmetic mean of a stock’s closing prices for the most recent n trading sessions. It moves forward as new sessions occur, using the latest n closing prices. Therefore, the best description is “the average price of a stock at the closing of n trading sessions.”

AI-written and checked against the verified answer.

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