Friday Effect in the Stock Market

Many people believe that there is a Friday Effect in the stock market. They dont necessarily spell out exactly what they mean by this, but there is a sense that stock prices tend to be lower on Fridays than on other days. Because stock prices are readily available on the web, it should be fairly easy to test this (alternative) hypothesis empirically. Before collecting data and running a test, however, you must decide exactly which hypotheses you want to test because there are several possibilities.

• Formulate at least two sets of null/alternative hypotheses.
• Gather some stock price data and test your hypotheses.
• Can you conclude that there is a statistically Friday Effect in the stock market?

Please submit a WORD document of at least two pages, 12 font Times New Roman, single-spaced, including background information, data analysis, results and interpretation, and managerial conclusions for the specific company.