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5) Assume the following prices of Microsoft are: Day stock price 0 $25 1 26 2 28 3 31 4 30 5 28 6 30

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5) Assume the following prices of Microsoft are: Day stock price 0 $25 1 26 2 28 3 31 4 30 5 28 6 30 7 31 8 30 9 28 10 27 1% filter rule is defined as follows: Buy the stock if the daily return >=1%, hold the stock until its daily return =1%, at which time the investor covers and buys. Absolute daily returns

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