Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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16. You decide to employ a trading rule
strategy on a stock that signals you to buy if
today's price is greater than yesterday's price
and sell if the opposite is true. If the market
for this stock is semi-strong form efficient,
what would be your expected long-run rate
of return?
greater than or equal to zero.
less than or equal to zero.
strictly positive.
cannot be determined.
Transcribed Image Text:16. You decide to employ a trading rule strategy on a stock that signals you to buy if today's price is greater than yesterday's price and sell if the opposite is true. If the market for this stock is semi-strong form efficient, what would be your expected long-run rate of return? greater than or equal to zero. less than or equal to zero. strictly positive. cannot be determined.
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