Use the following to answer the question(s) below.
The monthly returns on a social choice portfolio comprised of "green" companies are shown below for the last six months of 2015.
Month Monthly Return
July 2.2 %
August 2.5
September 1.8
October 1.4
November 1.1
December 1.9
-The forecasted monthly return for January 2016 using a three-month moving average is
A) 2.8.
B) 1.9.
C) 2.0.
D) 2.4.
E) 1.5.

Question

Quizplus · Accepted Answer

To forecast the monthly return for January 2016 using a three-month moving average, we take the average of the returns for the last three months provided: October (1.4%), November (1.1%), and December (1.9%). The average of these three months is (1.4 + 1.1 + 1.9) / 3 = 4.4 / 3 = 1.47%. Rounded to one decimal place, the forecasted monthly return is 1.5%.

Use the Following to Answer the Question(s) Below