Which one of the following statements is correct concerning moving averages?

A) The longer the time period under consideration, the more sensitive the moving average is to daily price fluctuations.
B) A simple moving average is computed as the arithmetic mode.
C) The shorter the time period under consideration, the easier it is to spot long-term price trends.
D) A moving average helps remove short-term fluctuations from the analysis.


Answer: D

Business

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