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

question 9

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:

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, leading to a stable market condition.

Fine

A monetary charge imposed on individuals or entities as penalty for not complying with laws, rules, or regulations, distinct from a "fine imposed" which refers to the act of levying the fine.

Marginal Cost

The escalation in aggregate cost resulting from the production of an additional unit of a product or service.

Marijuana

A mind-altering substance derived from the Cannabis plant, utilized for either medicinal or leisurely activities.