EMPIRICAL STUDY ON EFFICIENT MARKET HYPOTHESIS – A CASE STUDY ON INDIAN AND PAKISTAN STOCK MARKET
EMPIRICAL STUDY ON EFFICIENT MARKET HYPOTHESIS – A CASE STUDY ON INDIAN AND PAKISTAN STOCK MARKET

Summary/Abstract: Investment in stock market is generally considered as risky but at the same time it will give very heavy return to investors. Fundamental and technical factors play a vital role in determining share price movement. In his research article 1970 Fama has brought an important concept called Efficient Market Hypothesis. In the week form it is stated that there will be a free flow of information price will adjust quickly and past cannot be taken as base for predicting the future price movement. In random walk hypothesis past price cannot be taken as a base for predicting the future. For the purpose of evaluating efficient market hypothesis with reference to BSE SENSEX and Karachi stock market run test, KS test and KPSS test were applied. It was found that random walk hypothesis is not applicable for Indian stock market whereas it holds good for Pakistani stock market.

• Details
• Contents