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  • Cbn Jas Article: Testing The Weak-form Efficiency Market ... - Cenbank

Get Cbn Jas Article: Testing The Weak-form Efficiency Market ... - Cenbank

CBN Journal of Applied Statistics Vol. 3 No.1 117 Testing the Weak-form Efficiency Market Hypothesis: Evidence from Nigerian Stock Market Victor K. Gimba1 In recent years, the Nigerian Stock Exchange.

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This guide provides a detailed walkthrough for users filling out the CBN JAS Article regarding the testing of weak-form market efficiency in the Nigerian stock market. Follow these steps to ensure a complete and accurate submission.

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Weak form efficiency, also known as the random walk theory, states that future securities' prices are random and not influenced by past events. Advocates of weak form efficiency believe all current information is reflected in stock prices and past information has no relationship with current market prices.

Three common types of market efficiency are allocative, operational and informational. However, other kinds of market efficiency are also recognised. Arbitrage involves taking advantage of price similarities of financial instruments between 2 or more markets by trading to generate profits.

The Efficient Market Hypothesis helps justify why investors choose passive investing strategies. The Efficient Market Hypothesis has three forms: week, semi-strong, and strong. The Efficient Market Hypothesis assumes asset prices reflect all information available.

The main empirical test methods for Weak-form efficiency market hypothesis can be divided into two categories: one is to test the randomness of stock prices; the other is to test the invalidity of technical analysis, which testing the predictability of earnings.

Efficient Market Theory: Empirical Test # 1. This means that the investor who develops the stingy based on past prices and chooses his portfolio on that basis cannot continuously outperform another investor who 'buys and holds' his investments over a long-term period.

Weak form of EMH is tested using the Kolmogorov-Smirnov goodness of fit test, run test and autocorrelation test. The K-S test result concludes that in general the stock price movement does not follow random walk. The results of the runs test reveals that share prices of seven companies do not follow random walk.

Weak form of EMH is tested using the Kolmogorov-Smirnov goodness of fit test, run test and autocorrelation test. The K-S test result concludes that in general the stock price movement does not follow random walk. The results of the runs test reveals that share prices of seven companies do not follow random walk.

Tests of weak form efficiency in stock returns are performed pre- dominantly under the null hypothesis of independence or a martingale difference property. These properties rule out higher forms of dependence that may exist in stock returns that are otherwise serially uncorrelated.

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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
Privacy Notice
Legal Hub
Content Takedown Policy
Bug Bounty Program
About Us
Blog
Affiliates
Contact Us
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate WorkFlow
DocHub
Instapage
Social Media
Call us now toll free:
+1 833 426 79 33
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232