Question: You complete a run test on daily data for a thinly traded stock and the Z statistic is -5.13. If the stock has a return

You complete a run test on daily data for a thinly traded stock and the Z statistic is -5.13. If the stock has a return of -0.33% late in the trading day and you are convinced that other investors are not aware of the results, based on the runs test results, an investor would:

Buy or long the stock in late trading.

Sell or short the stock in late trading.

Wait an additional day to buy the stock.

Wait an additional day to short the stock.

Take neither a long or short position in the stock.

None of the above answers is correct.

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