Testing the weak form of efficient market hypothesis (EMH) towards Bombay Stock Exchange / Nur Dahiyah Abd Ghani
In the present times, the concept of the efficiency of stock market is an issue gaining ground and importance both in academics and business world. The Efficient Market Hypothesis is about the hypothesis that was described the notion that stock price and also prices in other financial market rapidly...
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| Format: | Student Project |
| Language: | English |
| Published: |
2016
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| Subjects: | |
| Online Access: | https://ir.uitm.edu.my/id/eprint/83130/1/83130.pdf https://ir.uitm.edu.my/id/eprint/83130/ |
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| Summary: | In the present times, the concept of the efficiency of stock market is an issue gaining ground and importance both in academics and business world. The Efficient Market Hypothesis is about the hypothesis that was described the notion that stock price and also prices in other financial market rapidly incorporate new information and related with efficiency of the stock market in stock price which will be react towards the new information regarding the new stock price. This Efficient Market Hypothesis had been narrowed down and specified to the weak form of efficient market hypothesis. The weak form of the efficient market hypothesis hold that stock prices that fully any relevant information that can be obtained from an analysis of past price movement. Various studies have been made on testing weak farm market efficiency but the results are mixed. While some support the Efficient Market Hypothesis, some do not. Bombay Stock Exchange is Asia's first stock exchange that was established in 1875. The present study entails both domestic and international issues. It is observed that economic, political and social issues have an impact on the study undertaken. Then the issue was derived in this study, whether Bombay Stock Exchange (BSE) is efficient in the weak form of EMH or not in weak form that was unrelated with the past price. This issue are important to security analysts, investors and security exchange regulatory bodies in their policy making decisions to improve the market condition. |
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