You complete a runs test on daily data for a thinly traded stock and the Z statistic is -5.13. If the stock has a return of +0.21% late in the trading day and you are convinced that other investors are not aware of the results, based on the runs test results, an investor would:
You complete a runs test on daily data for a thinly traded stock and the Z statistic is -5.13. If the stock has a return of +0.21% late in the trading day and you are convinced that other investors are not aware of the results, based on the runs test results, an investor would:
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
Problem 1PS
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76. You complete a runs test on daily data for a thinly traded stock and the Z statistic is -5.13. If the stock has a return of +0.21% late in the trading day and you are convinced that other investors are not aware of the results, based on the runs test results, an investor would:
- Buy or long the stock in late trading.
- Sell or short the stock in late trading.
- Wait an additional day to buy the stock.
- Wait an additional day to short the stock.
- Take neither a long or short position in the stock.
- None of the above answers is correct.
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