Explain random fluctuations of the market

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On August 12, 2020 Tesla announced a 5 to 1 stock split. The office of All-Honest Law Ltd. believes that a group of investors with inside information to the company's operation have benefited from the news. You are hired by All-Honest Law Ltd. to investigate the case. Test whether the pre-split changes in the stock price of TSLA was due to random fluctuations of the market or due to the leak of the stock split information.

Reference no: EM132792865

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