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An actively traded stock is selected at random and its daily price movement relative to the market index is examined. Which of the following 3
An actively traded stock is selected at random and its daily price movement relative to the market index is examined. Which of the following 3 sequences is most likely to have occurred over the past 6 trading days where a plus sign denotes stock price changes greater than the market, and a negative sign, price change less than the market?
Sequence | Day 1 | Day 2 | Day 3 | Day 4 | Day 5 | Day 6 |
(a) | + | - | + | - | + | - |
(b) | - | - | - | + | + | + |
(c) | + | + | - | + | - | - |
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