Formulate two sets of null hypotheses

Assignment Help Finance Basics

Reference no: EM131167765

Friday Effect In The Stock Market

Many people believe that there is a "Friday effect" in the stock market. They don't necessarily spell out exactly what they mean by this, but there is a sense that stock prices tend to be lower on Fridays than on other days. Because stock prices are readily available on the Web, it should be fairly easy to test this (alternative) hypothesis empirically.

Before collecting data and running a test, however, you must decide exactly which hypotheses you want to test because there are several possibilities.

Formulate at least two sets of null/alternative hypotheses. Then gather some stock price data and test your hypotheses. Can you conclude that there is a statistically significant Friday effect in the stock market?

Reference no: EM131167765

Questions Cloud

How such a revaluation crisis or inflow attack : Can you describe how such a "revaluation crisis" or "inflow attack" might operate when the government (like Germany's at the time) is highly fearful of inflation?

Analyze and discuss the four sources of primary law : Compose a memo that Ms. Field will use to present at this seminar. The memo will respond to the following questions: Analyze and discuss the four sources of primary law, and identify which source of law may be applicable to this case being certain ..

What is meant when we say that a program is memory bound : Explain what is meant when we say that a program or system is memory bound. What other types of bindings have we discussed?

How the power of government will be exercised : Politics is the process that determines who will occupy the roles of leadership in government and how the power of government will be exercised. Politics exists because individuals and groups have different interests and different views about publ..

Formulate two sets of null hypotheses : Formulate at least two sets of null/alternative hypotheses. - Then gather some stock price data and test your hypotheses.

What is the maximum length of the repeating section : When 5/20483 is written as a decimal, what is the maximum length of the repeating section of the representation?

Effects of a one-time rise in the foreign price level : show that the exchange rate will also appreciate immediately in proportion to the rise in P*. If the economy is initially in internal and external balance, will its position be disturbed by such a rise in P*?

Can the person sacked claim any rights or sue the company : Suppose a person develops a product that brings competitive advantage to a company and then the company sacks him but continue to use the product. Can the person sacked claim any rights or sue the company?

What are the deficiencies in the whetstone and dhrystone : What are the deficiencies in the Whetstone, Dhrystone, and Linpack benchmarks that are addressed by the SPEC CPU benchmarks?

User Account

All Pages