trading rule test??? HELP

Wiggum believes the expected rate of retun on the SP500 index is unrelated to past return. Furthermore, he is convinced that the current price of the index reflects all public information. In order to convince his supervisor of his hypothesis. Wiggum has downloaded a daily price seriss for the sp500 index for the period 1950 to 2007. which of the following test can wiggum use to test his hypothesis? A filter rule bautocorrelation test c run test d earning surprise test which one is correct? why?

I guess B here.

ov25 Wrote: ------------------------------------------------------- > I guess B here. this is what I selected But …the answer is D.

still waiting for answers

looks like a test of the semi-strong form of EMH : returns unrelated to past returns and prices reflect all publicly available info. filter rules, runs tests and autocorrelation tests are weak-form tests Earnings suprise is a seim-strong form EMH test - therefore the answer is D