"Tests of Weak-Form EMH: Statistical tests of independence between rates of return • Autocorrelation tests: price change in one period is correlated with the price change in some other period • Runs tests: To test a series of price changes for independence, the number of runs in that series is compared to see whether it is statistically different from the number of runs in a purely random series of the same size. • Filter Rules Test: A filter rule is a trading rule regarding the actions to be taken when shares rise or fall in value by x%. Filter rules should not work if markets are weak form efficient. Source: http://in.docsity.com/en-docs/Testing_Market_Efficiency_-_Security_Analysis_and_Portfolio_Management_-_Solved_Quiz_"
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