According to Investopedia, the weekend effect is a phenomenon in financial markets in which stock returns on Mondays are often significantly lower than those of the immediately preceding Friday. Although the cause of the weekend effect is debated, the trading behavior of individual investors appears to be at least one factor contributing to this pattern. Some theories that attempt to explain the weekend effect point to the tendency of companies to release bad news on a Friday after the markets close, which then depresses stock prices on Monday. For this homework question, you want to empirically test the weekend effect. Go to Yahoo Finance and enter the stock ticker symbol of the company that you want to analyze. Don't worry if you don't know the stock ticker symbol for the company you have in mind. Google it and you will find it. For the purposes of this question, it doesn't matter which company you select. You can choose to test the weekend effect on any publicly traded company in the U.S.. Yahoo Finance provides the historical stock trading data for the daily, weekly, and monthly frequencies. For testing the weekend effect, you need to choose the daily frequency. First, you need to decide on the time period. I think recent one year should be enough, although you can select any time period greater than a year starting with the recent (but not less than a year). Second, you need to find the daily returns using the stock prices when the markets open and when the markets close (use Adj Close). Then, you need to prepare the data for testing the weekend effect. You can test using the mean returns. Formulate the hypotheses and run the corresponding statistical test to determine if you see evidence of the weekend effect. Opposing research on the "reverse weekend effect" has been conducted by a number of analysts, who show that Monday returns are actually higher than returns on other days. Using the same data that you collected for testing the weekend effect, test if the reverse weekend effect research can be supported. For returns on other days, you can choose any one other day of the week (including Friday.)