a. Briefly (not more than 2 sentences) explain in your own words why an independence test is needed when exploring the concept of market efficiency? (This must be in relation with what was done in class). /4/

b. Given the table below Exhibit 1: Number of positive and Negative returns in days Johannesburg stock exchange (JSE) returns Output Positive days 59 Negative days 285

Calculate the runs standard deviation and interpret your answers. /10/. (5 marks for calculations and 5 marks for analysis, show all workings)