A "Runs Test" on Successive Stock Price Changes Which Supports

question 60

Multiple Choice

A "runs test" on successive stock price changes which supports the efficient market hypothesis would show the actual number of runs

• A) Falls into the range expected of a random series.
• B) Falls into the range expected of a dependent series.
• C) Is small.
• D) Is large.
• E) Would approximate N/2.

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Definitions:

Merchandise Inventory

Goods that a retailer, wholesaler, or distributor holds for the purpose of sale to customers.

Sales Budget

An estimate of future sales, often broken down by product lines or geographic areas, used for planning and guiding sales efforts.

Cash Disbursements

The outflow of cash for business expenses, acquisitions, or investments, documented within a specific period.

Raw Material Purchases

The acquisition of the basic substances or components that are used in the manufacturing process to produce finished goods.