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:

Aluminum Industry

A sector of the economy focused on the production, processing, and distribution of aluminum, a lightweight metal used in various applications.

Steel Industry

A sector of the economy focused on the production and distribution of steel, a critical material for construction, manufacturing, and infrastructure.

Oligopolistic Market

A market structure characterized by a small number of firms dominating the industry, leading to limited competition and often high prices.

Standardized Products

Goods or services that are uniform in quality and performance, making them identical across different producers and allowing them to be interchangeable.