moving average
average of stock prices that is continually recalculated an average of stock prices on a stock market, in which the calculation is made over a period which moves forward regularly
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average of stock prices that is continually recalculated an average of stock prices on a stock market, in which the calculation is made over a period which moves forward regularly
I have lost count of the number of times that I have found people building risk into NPV discount rates in decision trees. Uncertainty about the future is better modeled by probabilities of later events, followed by downstream decisions, a true options analysis that provides expected (weighted average) monetary values as the basis for valuing the options, and, when divided by costs, providing indices for constructing portfolios.
By Lawrence Phillips
Definitions of ’moving average’ and meaning of ’moving average’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’moving average’ and other financial terms with our online QFINANCE Financial Dictionary.