"• More trading in a security should promote the market efficiency. • Most popular trading technique is Filter Rule i.e. an investor trades a stock when the price change exceeds a filter value set for it (Buy-and-Hold Strategy). • If the behaviour of the stock price changes is random, filter rules should not outperform a simple buy-and-hold strategy. Source: http://in.docsity.com/en-docs/Testing_Market_Efficiency_-_Security_Analysis_and_Portfolio_Management_-_Solved_Quiz_"
Add a comment
to see other 4 answers