Professional Documents
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Deepika Aggarwal
MBA 4th SEM 11061203911
Conclusion
Biblography
INTRODUCTION
Efficient Markets Hypothesis:
Markets are considered to be efficient if there is a free flow of information and the market absorbs the information quickly. Market efficiency signifies: how quickly and accurately does relevant known information in immediately discounted by all the investors and reflected in the security prices in the market. No single investor has an information edge over the others as everyone knows all possible to know information
The random walk theory is based on efficient market hypothesis. EMH says that successive absolute short run prices changes are independent. The hypothesis is based on the assumptions that all the securities markets are efficient. To have efficient markets, it is essential that both internal and external efficiency must be there:Internal efficiency: External efficiency:
Secondary Objectives :
To study and analyze different forms of efficiency in market. To study Random Walk Theory
HYPOTHESIS:
The study is based on the following hypothesis:
RESEARCH METHODOLOGY
The research is descriptive in nature and attempts to study the relevance of the Random Walk Theory with respect to S&P CNX Nifty.
The Sample:
A Sample of 25 scripts belonging to the S&P CNX Nifty Index have been selected out of a total of 50 scripts on which the Index is based on the basis of their highest market capitalization from their respective sectors.Scripts of different sectors have been represented in the sample.
The scripts monthly returns have been taken for the period of
seven year from 1st April, 2006 to 31st March, 2013. Secondary
data of monthly return of 25 scripts belongs to S&P CNX Nifty Index been taken from the NSE website
Tools for Data Analysis: Run Test with the help of SPSS 17.0 Software PhillipsPerron Test with the help of EViews
FINDINGS
The findings show that although the market is efficient it is a weak form stage thereby showing that information dissemination is still
not immediate and insiders are still able to make profit from their
information . The result of this research is in tandem with the Sharma and
CONCLUSION
The study has revealed that the S&P CNX Nifty is weak form efficient thereby showing those investors will not benefit form technical analysis
abnormal profits..
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