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A TEST OF SIMULTANEOUS EFFICIENT AND INEFFICIENT MARKETS: AN APPLICATION OF THE MODIFIED R/S MODEL WITH INTRADAY STOCK RETURNS

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This paper presents a very interesting result: through applying the modified R/S technique (statistically robust) recently developed by Lo (1991) and using fifteen-minute interval data, it is found that both NYSE and NASDAQ stock returns exhibit the phenomenon of long term memory during different time intervals. Hence, an abnormal profit is quite possible for certain time intervals during a trading day.

Abstract

INTRODUCTION

STATISTICAL PROPERTIES OF THE DATA

THE MODIFIED R/S MODEL AND EMPIRICAL RESULTS

CONCLUDING REMARKS

ENDNOTES

REFERENCES

BIOGRAPHIES

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