Question
81. You complete a test of autocorrelation on daily data for a thinly traded stock and the Durbin Watson statistic is 3.73. If the stock
81. You complete a test of autocorrelation on daily data for a thinly traded stock and the Durbin Watson statistic is 3.73. If the stock has a return of +0.21% late in the trading day and you are convinced that other investors are not aware of the results of your study, based on the test results and probabilities, an investor would:
Buy or long the stock in late trading.
Sell or short the stock in late trading.
Wait an additional day to buy the stock.
Wait an additional day to short the stock.
Take neither a long or short position in the stock.
None of the above answers is correct.
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