Weighted Average, Moving Average, or Weighted Moving Average? Which do I use?

[Ajara7981]

I am needing some guidance on how to find the value of a stock on a particular date. The information I have is as follows:

3/31/11 value is 43,920

6/30/11 value is 46,213


Using this information I need to find the value for 5/20/11. Knowing that 5/20/11 is 50 days from 3/31/11 and 41 days from 6/31/11, do I give more weight to the 6/31/11 and if so how do I do that in an excel format that will give me an average with the 6/31/11 date being weighted more?


Thank you for an assistance you can give me on this problem.

 

[Hui]

Ajara7981


Firstly, Welcome to the Chandoo.org Forums


Although not strictly an excel question, the following will help you out a bit


The answer really depends on the distribution of your data

Without knowing anymore than you have given us it is hard to make much more than a guess that your data is linear.

If 5/20/11 is 50/91 = 50/(50+41) of the way between 3/31/11 and 6/30/11 then the value should be 50/91 of the way between 43,920 and 46,213

that is 43,920 + (46,213-43,920)*50/91


I will note that you used the words value of a Stock, and Stock as in Stock Market are anything but linear. If the Stock refers to a Supply Chain style stock this may be a valid approach, although in these situations most people will use a FIFO valuation methodology which may be slightly different to above.