Do you know what are the Filter Rules Test in Weak-Form EMH in Investment Management?

Can someone help me with this assignment question.
Add a comment

6 replies

"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_"
Add a comment
In technical analysis of stock trends, a with little thought fixed share regarding improve or maybe fall inside a stock's price the analyzer sees just as one indication to acquire or offer your standard. By way of example, the actual analyst may possibly fixed the/her own filtration principle from 20%. Should the stock soars 20%, the psychoanalyst endorses purchasing; when it is catagorized 20%, this individual/your woman proposes selling. As the finical percentage can be very subjective, one particular arrives at this by seeing the particular stock's traditional trends. Your filter tip exists to help your trader stay away from selling or buying with trivial or maybe anomalous alterations in price. However, several analysts don't fall for which the filtration concept persistently creates earnings with the investor.
Add a comment