Question: Are stock splits beneficial to stockholders SNL Financial studied stock

Are stock splits beneficial to stockholders? SNL Financial studied stock splits in the banking industry over an 18-month period. For a sample of 20 stock splits, 14 led to an increase in investment value, 4 led to a decrease in investment value, and 2 resulted in no change. Conduct a sign test to determine if it can be concluded that stock splits are beneficial for holders of bank stocks.
a. What are the null and alternative hypotheses?
b. Using α = .05, what is your conclusion?

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  • CreatedSeptember 20, 2015
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