Following a period of falling prices, the moving average will ________.
A) be below the current price
B) be above the current price
C) be equal to the current price
D) become more volatile than it had been before prices fell

Question

Quizplus · Accepted Answer

The moving average will be above the current price following a period of falling prices because it reflects past prices that were higher than the current lower prices.

Following a Period of Falling Prices, the Moving Average Will